Health & Beauty

Health & Beauty

Net sales and operating result

In the first half of 2018, the Health & Beauty segment increased net sales by 2.5% to CHF 745.7 million, CHF 695.8 million of which was accounted for by the Retail Business sector and CHF 48.7 million by the Products & Brands Business sector. The operating result (EBIT) improved by 9.5% to CHF 54.3 million, while return on sales (ROS) rose markedly by 0.5 percentage points compared to the prior year period to 7.3% (first half of 2017: 6.8%). This is an impressive result that demonstrates the further improvement in efficiency. Various measures and projects that were launched in recent years are now having a full effect on profitability. These include, for example, the switch to direct invoicing to health insurers, the consolidation of the central functions in the Retail Business sector and the continuing strengthening and optimisation of the pharmacy network. Investments in the Health & Beauty segment in the first half of 2018 totalled CHF 5.4 million.


Even closer to the customer


Net sales development

The Retail Business sector increased net sales in the first half of 2018 by 2.6% compared to the prior-year period to CHF 695.8 million (excluding Coop Vitality). By way of comparison, medication sales (Rx and OTC products) in the Swiss pharmacy market as a whole grew by 2.9% in the same period (IQVIA, first half of 2018, Swissmedic therapeutic products lists A, B, C, D). By contrast, sales of other products (non-medications) continued to decline.

Nine pharmacies joined the own-pharmacy network in the first half of 2018, including seven acquisitions and two new openings. At the same time, three locations were removed as part of optimisation measures, meaning that Galenica managed 343 own pharmacies as of the end of June 2018. The expansion accounted for 1.0% net of the sales growth. On a comparable basis, sales increased by a total of 1.6%. Together with the Amavita and Winconcept partner pharmacies, the Galenica pharmacy network comprised 500 points of sale throughout Switzerland as of mid-2018.

The sales performance of the Retail Business sector was slowed by the effect of federal price reduction measures as well as the market-wide decline in beauty products. Generic substitution, which is actively promoted by Galenica, also affected sales because of the lower drug prices. By contrast, the Retail Business sector posted good sales for the cold medicines due to the strong flu season.

New name, same strategy


Net sales development

In the first half of 2018, Products & Brands generated total sales of CHF 48.7 million, the same level as the prior year.

In the Swiss market, Products & Brands increased sales by a pleasing 3.7% to CHF 37.3 million. By comparison, the OTC market grew by 1.2% (IQVIA, first half of 2018) due to a strong flu season.

The sales performance in Products & Brands was driven by the strong growth of OTC products, particularly Algifor® and Merfen®. It was also boosted in the first half of 2018 by one-off additional sales of stocks to wholesalers: due to the change of name of Vifor Consumer Health to Verfora, from July 2018, Verfora, as a new marketing authorisation holder for pharmaceutical products, was not permitted to sell any products or packaging labelled with its former name. To avoid packaging relabelling costs, wholesalers were supplied with large quantities of the products concerned in the second quarter of 2018. It is therefore expected that order volumes will be lower in the second half of the year.

These additional sales of OTC products were offset by lower sales of beauty products, however: the launch of new beauty brands and associated build-up of inventory led to one-off sales in the first half of 2017 that were not repeated in the first half of 2018.

In contrast to the performance in the Swiss market, export sales declined by 10.8% to CHF 11.3 million, which was attributable in particular to sales generated from the launch of Anti-Brumm® Sun in Germany and Austria in the first half of 2017.


Net sales in million CHF


EBIT in million CHF


Number of employees


Galenica Ltd.

Untermattweg 8
3027 Bern

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