Galenica Group half-year results 2022

Ad hoc announcement pursuant to Art. 53 LR, Tuesday, 9 August 2022

Galenica grows strongly in the first half of 2022 and raises its outlook.

Galenica experienced strong operational growth in the first half of 2022 and, at the same time, has driven forward the implementation of its strategy with targeted acquisitions.

In the first half of 2022, the Galenica Group generated consolidated net sales of CHF 1,959.9 million, representing strong growth of 5.5% compared to the first half of 2021. The operating result (EBIT) improved by 4.4% to CHF 103.3 million. Adjusted2 EBIT fell by 1.4% to CHF 100.0 million. Compared to the prior-year period, adjusted2 return on sales (ROS) fell from 5.5% to 5.1%. Adjusted for the extraordinary additional sales in connection with COVID-191, which were exceptionally high in the prior-year period, sales growth amounted to 8.7% and adjusted2 EBIT growth to 19.8%

The lifting of the coronavirus measures had a positive impact on the business performance of the Group as a whole in the first half of 2022. A normal flu season and numerous illnesses caused by the coronavirus Omicron variant led to strong sales growth in OTC cold medication. In addition, the extremely positive growth momentum of the previous year was continued in the first half of 2022 by the specialty pharmacy Mediservice (+16.2%) and in the «Wholesale» sector (+3.8%).

Highlights of the first half of 2022

  • By further developing and piloting the e-prescription and the digital vaccination check, Galenica is continuing to invest in its digital offerings and patient safety.
  • By investing in the Well digital healthcare platform, Galenica is further advancing integrated and networked healthcare in Switzerland and expanding its digital and in-person offerings.
  • The software from Aquantic enables Galenica to increase the efficiency and quality of the reimbursement of special medicines and connects health insurers with pharmaceutical companies.
  • Through the joint venture Emeda, Galenica is improving medical care for nursing home residents and thus offering innovative solutions for carers.
  • By obtaining a distribution licence for Boiron products Verfora is expanding its homeopathic product range.
  • Around 43,000 customers used the services and advice offered by Galenica pharmacies in the first half of the year, around 60% more than in the first half of 2021.
  • Galenica is consistently implementing its sustainability goals with alternative energy concepts.

Key figures of the Galenica Group in the first half of 2022

in million CHF

1st half year 2022

1st half year 2021

Change

Net sales

 

 

 

Products & Care segment

986.8

918.9

7.4%

-  Retail (B2C) 

880.4

834.3

5.5%

   - Local Pharmacies

627.9

616.9

1.8%

   - Pharmacies at Home

252.6

217.5

16.1%

- Professionals (B2B)

109.3

88.5

23.5%

   - Products & Brands

75.1

59.6

26.0%

   - Services for Professionals


34.2

28.9

18.3%

Logistics & IT segment

1,434.6

1,377.9

4.1%

   - Wholesale

1,379.4

1,328.8

3.8%

   - Logistics & IT Services


63.8

50.5

26.2%

Corporate und Eliminationen


-461.6

-439.7


Galenica Group

1,959.9

1,857.1

5.5%

EBIT adjusted2)




Segment Products & Care

75.8

76.2

-0.5%

Segment Logistics & IT

25.4

26.3

-3.7%

Corporate and eliminations


-1.2

-1.1


Galenica Group

100.0

101.4

-1.4%

Net profit adjusted2)

81.3

82.5

-1.5%

Detailed information in the half year report 2022:

Outlook for sales and EBIT 2022 raised

Due to strong growth in the first half of 2022, Galenica is adjusting its forecast for sales and EBIT for the 2022 financial year. Galenica now expects sales growth of between 2% and 4% (previously at least at the same level as the previous year). Based on adjusted2 EBIT 2021 – excluding the extraordinary results from the COVID-19 initiatives (estimated at CHF 25 million) and the sale of the property at its headquarters in Bern (CHF 9.4 million) – Galenica now expects an EBIT increase of 8% to 12% (previously 5% to 10%).

1) Sales of COVID-19 initiatives with PCR, antigen, rapid and self-testing as well as vaccinations, EBIT contributions estimated.
2) Excluding the effects of IFRS 16 and IAS 19 (details of the adjusted key figures in the half year report 2022).

Contact

Galenica Ltd.

Media
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 17
Mobile +41 79 371 77 24
Fax +41 58 852 85 58

Contact

Galenica Ltd.

Investors
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 29
Fax +41 58 852 85 35