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Galenica AG
Earnings Release • Jan 18, 2024
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Earnings Release
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News Details
Ad-hoc | 18 January 2024 06:45
Galenica again achieves strong sales growth
Galenica AG / Key word(s): Development of Sales
18-Jan-2024 / 06:45 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Press release
Ad hoc announcement pursuant to Art. 53 LR
Galenica Group sales performed well in 2023, growing by 4.4% to CHF 3,746.0 million. As expected, sales growth of 3.3% in the second half of 2023 was lower than the +5.5% recorded in the first half due to the exceptionally strong comparative period in the second half of 2022, when there was a strong seasonal flu epidemic and COVID-19 infections.
In particular, the “Logistics & IT” segment posted strong growth of 4.9%. The “Products & Care” segment also performed well with sales growth of 3.3%, supported by the strong performance of 12.3% of the “Products & Brands” sector.
The strong performance of the overall pharmaceutical market, with growth of 4.9%, particularly contributed to the sales growth. This development was driven by increased sales of high-priced medications, with sales volumes declining by 0.2%.
Earnings outlook confirmed
Galenica confirms its guidance for the 2023 financial year, with EBIT 1 at roughly the same level as the previous year 2 , and the outlook for the 2023 dividend at least at the same level as the previous year.
Net sales of the Galenica Group 2023:
| (in million CHF) | 2023 | 2022 2 | Change |
|---|---|---|---|
| Products & Care segment | 1,635.6 | 1,584.0 | +3.3% |
| Retail (B2C) | 1,385.6 | 1,360.7 | +1.8% |
| Local Pharmacies | 1,306.9 | 1,286.9 | +1.6% |
| Pharmacies at Home | 78.9 | 74.0 | +6.6% |
| Professionals (B2B) | 256.1 | 228.8 | +11.9% |
| Products & Brands | 177.1 | 157.7 | +12.3% |
| Services for Professionals | 78.9 | 71.1 | +11.0% |
| Logistics & IT segment | 3,077.0 | 2,933.3 | +4.9% |
| Wholesale | 2,952.7 | 2,820.4 | +4.7% |
| Logistics & IT Services | 144.0 | 130.7 | +10.1% |
| Corporate and eliminations | -966.6 | -928.8 | |
| Galenica Group | 3,746.0 | 3,588.5 | +4.4% |
1 Excluding the effects of IFRS 16 and IAS 19
2 Adjusted prior-year figures due to joint venture with Redcare Pharmacy (formerly Shop Apotheke Europe)
“PRODUCTS & CARE” SEGMENT
The “Products & Care” segment achieved net sales of CHF 1,635.6 million (+3.3%) in financial year 2023. The Retail business area (B2C) accounted for CHF 1,385.6 million (+1.8%), with the “Local Pharmacies” sector contributing CHF 1,306.9 million (+1.6% excluding Coop Vitality) and the “Pharmacies at Home” sector CHF 78.9 million (+6.6%, without Mediservice). Adjusted for the extraordinary additional sales in connection with COVID-19 the previous year, sales growth for “Local Pharmacies” amounted to +2.7%.
The “Professionals” (B2B) business area increased sales to CHF 256.1 million (+11.9%), with the “Products & Brands” sector contributing CHF 177.1 million (+12.3%) and the “Services for Professionals” sector contributing CHF 78.9 million (+11.0%).
“Retail” business area (B2C)
- The 2.7% growth of “Local Pharmacies” adjusted for COVID-19 is in line with the market trend.
- As expected, sales growth in the second half of 2023 was lower than in the first half due to the exceptionally strong comparative period in the second half of 2022, when there was a strong seasonal flu epidemic and COVID-19 infections.
- Compared to the previous year, demand for vaccinations in Galenica pharmacies increased by 18% (without COVID-19 vaccinations).
- Around 138,000 customers made use of the health services and advice offered by Galenica pharmacies in 2023, 14% more than in the previous year.
- Together with Redcare Pharmacy, Galenica established Switzerland’s leading online pharmacy, adding a pure online pharmacy to its offering.
By way of comparison:
- Drug sales from bricks-and-mortar pharmacies in Switzerland (prescription [Rx] and OTC products) grew by 4.4% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 2023).
- Sales of medications from mail-order pharmacies in Switzerland (prescription [Rx] and OTC products) grew by 1.7% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 2023).
- The non-medication segment of the consumer healthcare market declined by 1.3% in the reporting year (IQVIA, Consumer Health Market Switzerland, 2023, Nutrition, Personal Care, Patient Care, excluding COVID-19 self-tests, excluding OTC).
“Professionals” business area (B2B)
- With the acquisition of Padma, Verfora further expanded its complementary medicine offering, increasing its market share in the Swiss consumer healthcare market to 10.3%.
- Verfora’s export sales showed very positive growth, with an increase of 33.6%. This pleasing result was driven by a recovery in demand for products such as travel and cold products, among other things, as well as the expansion of storage capacity abroad, for Perskindol® for instance, due to a regulatory change that will soon come into effect.
- The Galenica network’s home care services performed very successfully, with growth well above the previous year.
By way of comparison:
- The consumer healthcare market grew by 0.7% year-on-year (IQVIA, Consumer Health Market Switzerland, 2023, excluding COVID-19 self-tests).
“LOGISTICS & IT” SEGMENT
The “Logistics & IT” segment achieved net sales of CHF 3,077.0 million (+4.9%) in the 2023 financial year. CHF 2,952.7 million (+4.7%) of this was generated by the “Wholesale” sector and CHF 144.0 million (+10.1%) by the “Logistics & IT Services” sector.
“Wholesale” sector
- The pharmacy customer segment recorded growth of 5.4%. Adjusted for additional sales related to COVID-19, which were still high in the previous year, sales growth amounted to 6.3%. Further market share was gained with third-party pharmacies.
- The physicians segment also did well in the year, growing 3.6%.
- With the “Safety Stock” initiative Galexis is actively committed to improving the security of supply in Switzerland.
By way of comparison:
- The overall pharmaceutical market grew by 4.9% (IQVIA, Pharmaceutical Market Switzerland, 2023).
- The physicians segment grew by 7.8% (IQVIA, Pharmaceutical Market Switzerland, 2023).
- The pharmacy segment grew by 4.1% (IQVIA, Pharmaceutical Market Switzerland, 2023).
“Logistics & IT Services” sector
- In addition to its robust basic business, Alloga was able to take over distribution from a leading manufacturer of vaccines.
- The Documedis® physicians and pharmacy software continued to develop technically in the year under review. In 2023, over 270 million “Clinical Decision Support Checks” (CDS) were carried out on the basis of Documedis® solutions.
Additional information on sales figures and further information can be found in our investor presentation .
Dates for the diary
| 12 March 2024: | Publication of Galenica Group annual results 2023 |
| 10 April 2024: | Annual General Meeting of Galenica Ltd. |
| 06 August 2024 | Publication of Galenica Group half-year results 2024 |
For further information, please contact:
| Media Relations: E-Mail: [email protected] Tel. +41 58 852 85 17 |
Investor Relations: E-Mail: [email protected] Tel. +41 58 852 85 31 |
*Welcome to the Galenica network!
Our ambition is to meet the needs of patients and customers in the Swiss healthcare market in a seamless, efficient and personalised way. To achieve this, we operate the Galenica network with over 20 Business Units, the strongest partners in the Swiss healthcare market. We offer fully integrated solutions both for customers and patients as well as for pharmacies, drugstores, medical practices, hospitals, retirement and nursing homes, home care providers, wholesalers, pharmaceutical companies, health insurance funds and other partners.
Galenica is listed on the Swiss Stock Exchange (SIX Swiss Exchange, GALE, security number 36,067,446). Additional information concerning Galenica can be found at www.galenica.com .*
End of Inside Information
| Language: | English |
| Company: | Galenica AG |
| Untermattweg 8 | |
| 3027 Bern | |
| Switzerland | |
| Phone: | +41 058 852 81 11 |
| E-mail: | [email protected] |
| Internet: | https://www.galenica.com |
| ISIN: | CH0360674466 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1817173 |
| End of Announcement | EQS News Service |