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Services

Services

Net sales and operating result

The Services segment generated net sales of CHF 1,192.4 million in the first half of 2019, an increase of 1.3% compared to the prior-year period. The federal price reduction measures madated in 2018 continued to impact negatively on sales in the period under review. Excluding the effect of the price reduction measures for medications by the authorities (-2.6%), sales growth would have amounted to a pleasing 3.9%. This was achieved in an overall market whose slight growth (+0.9%, IQVIA, Pharmaceutical Market Switzerland, first half of 2019) was driven especially by the positive sales performance of hospitals (+4.2%, IQVIA, Pharmaceutical Market Switzerland, first half of 2019) as well as by high-priced special medications that are usually not supplied via wholesale but directly to specialist doctors (doctors: +3.7%, IQVIA, Pharmaceutical Market Switzerland, first half of 2019).

The adjusted1) operating result (EBIT), i.e. excluding the effects of the new lease accounting standard IFRS 16, was CHF 22.6 million (+1.2%). The impact of CHF 0.1 million from the first-time adoption of IFRS 16 had no significant effect on the EBIT of CHF 22.7 million (+1.6%, first half of 2018: CHF 22.3 million). Adjusted1) return on sales (ROS) remained stable at 1.9%. Investments in the first half of 2019 amounted to CHF 16.3 million and were used in particular for the new enterprise resource planning (ERP) software that is being rolled out progressively at Alloga and Galexis and for the modernisation and renovation project at the Galexis distribution centre in Lausanne-Ecublens.

1,192.4

Net sales in million CHF

22.6

EBIT adjusted in million CHF

1,750

Number of employees

Contact

Galenica Ltd.

Untermattweg 8
3027 Bern

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