Galenica Investor Day: Updated mid-term guidance and strategy update
At today’s Investor Day, Galenica is presenting its updated mid-term guidance. Galenica is raising its mid-term growth forecast and now expects annual net sales growth of between 3% and 5%. Furthermore, Galenica is confirming its mid-term targets for return on sales (ROS)¹ at over 9.5% in the Products & Care segment and up to 2% in the Logistics & IT segment. At its Investor Day, Galenica will also provide in-depth insights into its strategic programmes and show how it intends to to tap into additional growth potential through innovation.
Galenica is raising its mid-term growth forecast and now expects net sales to grow by 3% to 5% in the next years. To date, Galenica had expected sales to grow faster than the expected market growth of 1% to 2%.
Galenica is confirming its mid-term targets for return on sales (ROS)1 at over 9.5% in the Products & Care segment and up to 2% in the Logistics & IT segment. Galenica aims to achieve these targets in its centenary year 2027 with an EBIT2 of over CHF 250 million. Due to an intensive final phase of the ERP project in the Logistics & IT segment, scheduled to be completed in 2025, ongoing investments in the digital Omni-Channel infrastructure as well as further investments in staff as a basis for the Group’s successful further development, Galenica expects a stable development of its return on sales (ROS)1 up to 2025.
Galenica assumes that the level of investments3 will remain stable over the next years and continues to aim for net debt2 of around +/-2× EBITDA2. Galenica continues to pursue a policy of at least stable dividends that grow in line with results.
The current guidance for the 2023 financial year, with sales growth of between 3% and 6% and EBIT2 at roughly prior year level (based on the restated figures from the previous year) remains unchanged.
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