Galenica achieves strong results in 2022 and increases dividend again

Ad hoc announcement pursuant to Art. 53 LR

Tuesday, 7 March 2023

The Galenica Group looks back on an extremely successful 2022 financial year. With an increase in sales of 4.7% to CHF 4,014.3 million and an adjusted¹ EBIT of CHF 200.8 million (-5.8%), Galenica achieved very good results. Excluding the extraordinary results in the previ-ous year from the COVID-19 initiatives (estimated at CHF 25 million) and the property sale at the headquarters in Bern (CHF 9.4 million), adjusted¹ EBIT growth amounted to a high 12.4%. The Board of Directors wants the shareholders to benefit from this success and will propose a divi-dend increase of 5% (CHF 2.20 per share) to the Annual General Meeting.

After a normal seasonal flu season and numerous cases of the Omicron coronavirus variant had led to strong growth in the first half of 2022, business for the entire Group was also influenced in the second half of the year by the early onset of a heavy flu season. This had a particular im-pact on the Products & Brands sector, which grew at an above-average rate of 19.8%. In addi-tion, the extremely positive growth momentum of the previous year was continued in the 2022 financial year by the specialty pharmacy Mediservice (+12.9%) .

Highlights of the 2022 financial year:

More than 121,000 customers made use of the services and advice offered in Galenica pharmacies, 60% more than in the previous year.
With a wide range of advice and services on offer, the pharmacy has further established it-self as the first point of contact for health issues.
The specialty pharmacy Mediservice made a significant contribution to the strong growth of the “Pharmacies at Home” sector and offered more than 60 main indications by the end of 2022, for a total of around 90 complex forms of therapy.
The linking of online and offline offerings gained further momentum, for example with online appointment bookings for pharmacy-based services via the Well health app.
Innovative offerings have further strengthened the home care sector: both existing and new B2B customers benefited from the joint venture Emeda and the offerings from Lifestage So-lutions, Bichsel and Medifilm.
Thanks to acquisitions and by obtaining distribution licences, Verfora further strengthened its leading position in the Swiss consumer healthcare market and expanded its portfolio through the distribution partnership with Boiron, particularly in the area of complementary medicine.
After a construction period of around 40 months, Galexis inaugurated its modernised dis-tribution centre in Lausanne-Ecublens in summer 2022.

Key figures for the Galenica Group 2022:

(in CHF million)	2022	2021	Change
Net sales
Products & Care segment	2,029.6	1,908.1	+6.4%
Retail (B2C)	1,806.6	1,720.0	+5.0%
Local Pharmacies	1,286.9	1'261.5	+2.0%
Pharmacies at Home	519.9	458.8	+13.3%
Professionals (B2B)	228.8	194.0	+17.9%
Products & Brands	157.7	131.6	+19.8%
Services for Professionals	71.1	62.4	+13.9%
Logistics & IT segment	2,933.3	2,831.4	+3.6%
Wholesale	2,820.4	2'728.4	+3.4%
Logistics & IT Services	130.7	111.9	+16.8%
Corporate and eliminations	-948.6	-904.8
Galenica Group	4,014.3	3,834.7	+4.7%
EBIT adjusted¹
Products & Care segment¹	153.5	154.5	-0.6%
Logistics & IT segment¹	49.2	61.0	-19.3%
Corporate and eliminations	-1.9	-2.4
Galenica Group¹	200.8	213.1	-5.8%
Net profit adjusted¹	165.7	174.8	-5.2%