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Galenica AG
Earnings Release • Jan 23, 2025
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Earnings Release
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News Details
Ad-hoc | 23 January 2025 06:45
Galenica reports strong sales growth once again
Galenica AG / Key word(s): Development of Sales
23-Jan-2025 / 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 once again performed very positively in 2024, with growth of 4.7% to CHF 3,922 million. As a result, Galenica outperformed the entire pharmaceutical market in terms of growth (+3.5%, IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
Following a solid increase in sales of 2.6% in the first half of 2024, Galenica again posted significantly stronger growth of +6.7% in the second half of 2024. Market share gains in the wholesale business with doctors and pharmacies contributed significantly to the increase in sales. In addition to acquisitions, the main growth driver in the pharmacy business was strong organic growth in sales of prescription-only medications. In addition, the second half of the year had two more sales days than in the prior-year period, which boosted growth in this half-year period by an estimated +1.6%. Due to the leap year, 2024 as a whole had one more sales day than in the previous year, which corresponds to an additional growth effect of around +0.4%.
By contrast, a mild flu outbreak and a low occurrence of colds in the fourth quarter of 2024 weakened sales growth, particularly in the “Products & Brands” sector. Significant additional sales of generics and biosimilars also continued to dampen growth. The generics substitution rate of Galenica pharmacies increased by 4.0% on average in 2024 to a high 79.2% (75.2% at the end of December 2023).
Guidance for 2024 annual results confirmed
Galenica confirms its guidance for the 2024 annual results projecting EBIT 1 growth between 8% and 11% and a dividend at least at the previous year’s level.
Net sales of the Galenica Group January – December 2024
| (in million CHF) | 2024 | 2023 | Change |
|---|---|---|---|
| Products & Care segment | 1,700.2 | 1,635.6 | 3.9% |
| Retail (B2C) | 1,442.0 | 1,385.6 | 4.1% |
| Local Pharmacies | 1,365.1 | 1,306.9 | 4.4% |
| Pharmacies at Home | 77.3 | 78.9 | -2.1% |
| Professionals (B2B) | 268.2 | 256.1 | 4.7% |
| Products & Brands | 183.4 | 177.1 | 3.5% |
| Services for Professionals | 84.8 | 78.9 | 7.5% |
| Logistics & IT segment | 3,240.7 | 3,077.0 | 5.3% |
| Wholesale | 3,104.5 | 2,952.7 | 5.1% |
| Logistics & IT Services | 157.2 | 144.0 | 9.2% |
| Corporate and eliminations | -1,019.2 | -966.6 | |
| Galenica Group | 3,921.7 | 3,746.0 | 4.7% |
1 Excluding the effects of IFRS 16 and IAS 19
PRODUCTS & CARE SEGMENT
The “Products & Care” segment achieved net sales of CHF 1,700.2 million (+3.9%) in the 2024 financial year. Of this, CHF 1,442.0 million (+4.1%) was attributable to “Retail” (B2C), with “Local Pharmacies” contributing CHF 1,365.1 million (+4.4%, excluding Coop Vitality) and “Pharmacies at Home” accounting for CHF 77.3 million (-2.1%, excluding Mediservice).
“Professionals” (B2B) increased sales to CHF 268.2 million (+4.7%), with “Products & Brands” contributing CHF 183.4 million (+3.5%) and “Services for Professionals” CHF 84.8 million (+7.5%).
Retail (B2C)
- The pharmacy network (excluding Coop Vitality Coop) continued to evolve dynamically: Twelve pharmacies were acquired, two new pharmacies were opened and four were closed or merged with other locations. The expansion effect on sales growth in “Local Pharmacies” therefore amounted to +1.7%.
- Adjusted for this expansion effect, Galenica pharmacies grew organically by 2.7% thanks to high demand for prescription-only medications.
- Compared to the previous year, demand for vaccinations in Galenica pharmacies increased by 20% (excluding COVID-19 vaccinations).
- Around 193,000 customers made use of the healthcare services and advice offered by Galenica pharmacies in 2024, 39% more than in the previous year.
- The “Pharmacies at Home” sector experienced a slight decline due to the streamlining of various services. The largest business, “Bichsel HomeCare”, continued to grow steadily.
By way of comparison
- Sales of medications from bricks-and-mortar pharmacies in Switzerland (prescription-only [Rx] and OTC products) grew by 3.5% in the reporting period (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
- Sales of medications from mail-order pharmacies in Switzerland (prescription-only [Rx] and OTC products) declined year-on-year by -2.9% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
- The non-drugs segment of the Consumer Healthcare market also contracted by -0.8% in the period under review (IQVIA, Consumer Health Market Switzerland, YTD December 2024, nutrition, personal care, patient care, excluding OTC).
Professionals (B2B)
- Verfora continued to grow in 2024 and expanded its market position. Organic growth in “Products & Brands”, excluding the expansion effect (+0.7%) attributable to the acquisition of Padma in 2023, amounted to 2.8%.
- Verfora’s export business showed very positive organic growth, with an increase of 15.1%. This pleasing result was driven by higher demand for Verfora products such as Perskindol® in Asia, and earlier product deliveries abroad compared to the previous year.
- Due to a reduction in inventories in the market combined with a mild flu outbreak in the fourth quarter of 2024, Verfora’s Swiss business saw a slight organic decline of -0.2%. At 4.2%, sales of Verfora products in the pharmacy and drugstore market grew faster than the overall market (IQVIA, Consumer Health Market Switzerland, YTD December 2024), enabling further market share to be gained.
- The growth drivers in “Services for Professionals” (+7.5%) were once again Lifestage Solutions, and Medifilm in the business with care homes and home care organisations.
By way of comparison
- The consumer healthcare market grew by 1.1% year-on-year (IQVIA, Consumer Health Market Switzerland, YTD December 2024).
LOGISTICS & IT SEGMENT
The “Logistics & IT” segment achieved net sales of CHF 3,240.7 million (+5.3%) in the 2024 financial year.
Of this, CHF 3,104.5 million (+5.1%) was attributable to “Wholesale” and CHF 157.2 million (+9.2%) to “Logistics &
IT Services”.
Highlights
- The pharmacy customer segment grew by 4.0%, outperforming the market.
- At 7.8%, the greatest growth was achieved in the physicians segment, which enabled market share to be gained.
- HCI Solutions also performed well. By the end of December, around 369 million CDS checks had been carried out (+33%), an important contribution to patient safety.
By way of comparison
- The overall pharmaceutical market grew by 3.5% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
- The physicians segment grew by 5.7% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
- The pharmacy segment grew by 2.9% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
Additional information on sales figures and further information can be found in our sales presentation .
Upcoming dates
| 11 March 2025 | Publication of Annual Results 2024 of the Galenica Group |
| 10 April 2025 | Annual General Meeting of Galenica Ltd. |
| 22 May 2025 | Galenica Group sales update |
| 7 August 2025 | Publication of Galenica Group half-year results 2025 |
For further information, please contact:
| Media Relations: Iris Müller, Chief Communications Officer Tel. +41 58 852 85 17 E-Mail: [email protected] |
Investor Relations: Julian Fiessinger, CFO Tel. +41 58 852 85 31 E-Mail: [email protected] |
Welcome to the Galenica network!
Over 8,000 employees at Galenica work tirelessly to improve the health and well-being of the people of Switzerland every day. With its pharmacies, pharmaceutical logistics providers, products, services and home care, Galenica has a broad and successful position in the market. We are shaping the future of healthcare in collaboration with our strong partners – by drawing on the diverse skills and extensive expertise of our entire network. Our ambition is to fulfil the needs of customers and patients in the Swiss healthcare market seamlessly, efficiently and personally.
Galenica is listed on the Swiss Stock Exchange (SIX Swiss Exchange, GALE, security number 36,067,446). Additional information about 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: | 2072711 |
| End of Announcement | EQS News Service |