Galenica 2015: profit increased for the 20th consecutive year
Tuesday, 15 March 2016, ↓ directly to download
The Galenica Group recorded profit growth for the 20th consecutive year in 2015. Allowing for negative effects due to IAS 19, net profit before deduction of minority interests rose by 18.6% to CHF 370.0 million and by 5.8% to CHF 301.1 million after deduction of minority interests. On a comparable basis – without negative effects due to IAS 19 – net profit before deduction of minority interests rose by 21.1% and net profit after deduction of minority interests by 8.6%.
The division of the Galenica Group into two independent listed companies is planned for the fourth quarter of this year. Group management has therefore decided to issue separate earnings guidance in 2016 for each of the two Business units, Vifor Pharma and Galenica Santé. In view of outstanding legal and organisational decisions affecting the financial results of the two Business units, guidance will be provided at upstream EBIT level.
The Board of Directors will propose to the Annual General Meeting on 28 April 2016 a dividend of CHF 18.00 (previous year: CHF 15.00) per registered share.
Vifor Pharma further expanded its leadership in the iron replacement product segment and helped grow the overall market in 2015. Spurred by the effective implementation of refocused promotional efforts and continued expansion in the USA, the leading iron replacement product Ferinject®/Injectafer® increased sales by 33.2% to CHF 250.9 million. As a result, the outstanding growth trend from the first half of 2015 was improved further still. According to IMS data, global market sales of Ferinject®/Injectafer® totalled in 2015 approximately CHF 370 million, an increase of 40%. With sales of CHF 43.2 million (+190.6%), the phosphate binder Velphoro® for patients suffering from chronic kidney disease also performed very well.
In addition, Vifor Pharma was able to conclude an exclusive licensing agreement with Roche for the commercialisation of the long-acting Erythropoietin Stimulating Agent (ESA) Mircera® in the USA and Puerto Rico, while Vifor Fresenius Medical Care Renal Pharma (VFMCRP), the common company between Vifor Pharma and Fresenius Medical Care in the Nephrology area, concluded an exclusive partnership with US company Relypsa to commercialise the potassium binder VeltassaTM (Patiromer FOS) in all markets outside the USA and Japan.
Overall, Vifor Pharma managed to record net sales of CHF 967.0 million in 2015, an increase of 36.9% from the previous year. EBIT rose by 25.7% to CHF 333.0 million. Not only was the expected decline in other operating income of CHF 93.0 million therefore fully compensated; a sharp net increase in earnings was achieved due to the strong performance of new products.
Despite significant investments in long-term projects such as VeltassaTM (Patiromer FOS), the management of Vifor Pharma has set itself the goal for 2016 of achieving at least the same level of EBIT as in the previous year on a comparable basis.
Galenica Santé performed very well, especially in a market environment that came under heavy pressure from the euro exchange rate and consumer tourism. In July, the newly established company Vifor Consumer Health was transferred to Galenica Santé, complementing the portfolio perfectly thanks to its strong brands. In addition, the organisational structure was adapted with a view to the planned independence.
Galenica Santé increased sales in 2015 by 3.9% to CHF 2,891.3 million. EBIT rose by 21.7% to CHF 125.2 million, supported by Vifor Consumer Health, which was established on 1 July 2015. On a comparable basis, EBIT also saw a double-digit increase, up 14.4%.
Despite a persistently difficult market situation, the management of Galenica Santé has set itself the goal for 2016 of once again increasing EBIT on a comparable basis from the previous year.
EBIT, EBITDA and consolidated net Profit of the Galenica Group
(in million CHF)
- Health & Beauty
Eliminations Galenica Santé
Corporate and eliminations
- shareholders Galenica Ltd.
- minority interests
Galenica is a diversified Group active throughout the healthcare market which, among other activities, develops, manufactures and markets pharmaceutical products, runs pharmacies, provides logistical and database services and sets up networks. With its two Business units Vifor Pharma and Galenica Santé, the Galenica Group enjoys a leading position in all its core business activities. A large part of the Group’s income is generated by international operations. Galenica is listed on the Swiss Stock Exchange (SIX Swiss Exchange, GALN, security number 1,553,646).
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