Annual report 2018

16 | Galenica annual report 2018 Strengthening of the pharmacy network Net sales development The Retail Business sector increased net sales in 2018 by 3.1% year-on-year to CHF 1,430.5 million (excluding Coop Vitality). The expansion of the pharmacy network accounted for 2.6% of growth. On a comparable basis, net sales for 2018 increased by 0.5%. The government-mandated price reduction measures for medications had a negative impact of 1.6% on growth. Excluding these price reductions, organic growth (excluding expansion effects) would have amounted to a pleasing 2.1%. By way of comparison, medication sales (Rx and OTC prod- ucts) in the Swiss pharmacy market as a whole grew by 1.0% (IQVIA, pharmaceutical market Switzerland 2018). By contrast, sales of other products (non-medications) declined by 0.6% (IQVIA, Personal, Patient Care and Nutri- tion 2018). Thirteen pharmacies joined the own-pharmacy network in 2018, including ten acquisitions, one of which was the “Bahnhof Apotheke” pharmacy at Zurich main station, which was acquired in full in the second half of 2018; there were also three new openings. At the same time, five locations were removed as part of optimisation measures, meaning that the number of own pharmacies in 2018 increased by a net total of eight to 345 locations (previous year: 337). Together with the Amavita and Winconcept partner pharma- cies, the Galenica pharmacy network comprised more than 500 points of sale throughout Switzerland for the first time as of the end of 2018. “Following the pilot with Amavita, there are plans to also add the e-mediplan module to Sun Store and Coop Vitality smartphone apps in 2019.” Strategic priorities – Focus on customer service: tailored offerings, new services, innovative own brands and a compelling presence for all pharmacy formats. – Create a lean, flexible organisation: take advantage of synergies in procurement, product range management and all services to compensate for the ongoing price reductions mandated by the authorities. – Promote growth: organically and inorganically by expanding the network through the acquisition of own and independent partner pharmacies. Retail Business sector Retail