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Health & Beauty

Net sales

CHF 1,483.5 million

EBIT

CHF 99.7 million

ROS

6.7%

Investments

CHF 28.9 million

Employees

4,741 (3,575 full-time equivalents)

Keeping up with customers’ needs

The Health & Beauty segment comprises the Retail and Products & Brands Business sectors. In the Retail Business sector, Galenica operates the largest pharmacy network in Switzerland, giving it an excellent distribution network that offers unique potential for the sale of own, exclusive and partner brands. Through its Products & Brands Business sector, Galenica develops and markets own brands and products as well as exclusive brands and products of its business partners.

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 Health & Beauty net sales

Net sales and operating result

In 2017, the Health & Beauty segment generated net sales of CHF 1,483.5 million, CHF 1,390.1 million of which was accounted for by the Retail Business sector and CHF 94.7 million by the Products & Brands Business sector. The 3.2% increase in sales in the Health & Beauty segment compared with the previous year was primarily attributable to the strengthened pharmacy network, the strong growth of specialty pharmacy Mediservice and product portfolio expansion.

The operating result (EBIT) grew by 6.7% to CHF 99.7 million, thanks to continuing improvements in efficiency. Return on sales (ROS) for the Health & Beauty segment increased to 6.7% in 2017 (previous year: 6.5%) due, among other factors, to the acquisition and in-licensing of several brands. Investments totalled CHF 28.9 million in 2017 (previous year: CHF 15.2 million) and were principally used for the acquisition of the brands Merfen® and Vita-Merfen®, development and launch of new products and services, and for the rebuilding and renovation of pharmacies.

 Retail Business sector

Innovation strengthens market leadership

Net sales development

The Retail Business sector increased net sales in 2017 by 3.1% year-on-year to CHF 1,390.1 million (excluding Coop Vitality). By way of comparison, sales of medications (Rx and OTC products) in the Swiss pharmacy market as a whole rose by 2.3% in 2017 (IQVIA, Swissmedic therapeutic products lists A, B, C, D). By contrast, sales of other products (non-medications) declined by 3.5% (IQVIA, personal, patient care and nutrition). Although the volume of high-priced medications increased further, the pharmacy market posted slowed growth compared to other segments. Contributing factors were ongoing shopping tourism in neighbouring countries, the switch to online shopping and frequency decline in many shopping centres.

1,390.1

Net sales in million CHF
Galenica Group CHF 3,214.2 million

The number of own pharmacies increased during the year under review to a total of 337 locations (previous year: 329). Together with the Amavita and Winconcept partner pharmacies, the Galenica pharmacy network comprised some 500 points of sale throughout Switzerland as of the end of 2017. The increase in the number of pharmacies accounted for 1.1% of the sales increase. On a comparable basis, sales increased by a total of 2.0%.

4,614

Number of employees
Galenica Group 6,398

 Products & Brands Business sector

The partner of choice for services, advice and training

Net sales development

Despite challenging market conditions in 2017, the Products & Brands Business sector, mainly comprising the business activities of Vifor Consumer Health, achieved net sales of CHF 94.7 million (+6.0%). Thanks to the launch of new beauty products and higher sales of brands such as Triofan®, Products & Brands was able to increase net sales in Switzerland by 4.0% to CHF 76.4 million in a flat OTC market (–0.4%, IQVIA, Swissmedic OTC therapeutic product lists C and D). Export sales increased by 15.6% to CHF 18.3 million, with Anti-Brumm® in particular experiencing dynamic growth in Germany and a successful relaunch in Italy.

94.7

Net sales in million CHF
Galenica Group CHF 3,214.2 million

127

Number of employees
Galenica Group 6,398

1,483.5

Net sales in million CHF
Galenica Group CHF 3,214.2 million

99.7

EBIT in million CHF
Galenica Group CHF 141.8 million

4,741

Number of employees
Galenica Group 6,398

Contact

Galenica Ltd.
Untermattweg 8
3027 Bern

Tel. +41 58 852 81 11
Fax +41 58 852 81 12