Earnings Release • Oct 24, 2024
Earnings Release
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Ad hoc announcement pursuant to Art. 53 LR
Galenica AG / Key word(s): Quarter Results
Galenica increases sales growth in the third quarter
24-Oct-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
Following solid sales growth of 2.6% in the first half of 2024, Galenica grew more strongly again in the third quarter and generated net sales of CHF 2,864.8 million to the end of September 2024. With growth of 4.1%, Galenica outperformed the growth of the overall pharmaceutical market (+2.9%, IQVIA, pharmaceutical market Switzerland, YTD September 2024).
The strong performance in the third quarter was further supported by widespread colds. The negative impact of the missing sales day at the end of June which was estimated to be -0.8% compared with the prior-year period, has been offset by the end of September. Significant additional sales of generics and biosimilars continued to dampen growth. The generic substitution rate of Galenica pharmacies stabilised at a high 80.3% at the end of September compared to the middle of the year (80.8% at the end of June 2024). The revised distribution share for prescription drugs that entered into force on 1 July 2024 had no significant impact on Galenica’s sales development to the end of September.
Galenica confirms its outlook for the 2024 financial year with sales growth of between 3% and 5%, EBIT 1 growth of between 8% and 11% and a dividend at least equal to the previous year’s level.
| (in million CHF) | 09/2024 | 09/2023 | Change |
|---|---|---|---|
| Products & Care segment | 1,242.6 | 1,195.1 | 4.0% |
| Retail (B2C) | 1,046.2 | 1,008.0 | 3.8% |
| Local Pharmacies | 989.2 | 950.1 | 4.1% |
| Pharmacies at Home | 57.2 | 58.1 | -1.4% |
| Professionals (B2B) | 204.1 | 192.9 | 5.8% |
| Products & Brands | 141.9 | 134.6 | 5.4% |
| Services for Professionals | 62.2 | 58.3 | 6.8% |
| Logistics & IT segment | 2,362.5 | 2,260.5 | 4.5% |
| Wholesale | 2,262.8 | 2,169.0 | 4.3% |
| Logistics & IT Services | 116.7 | 105.5 | 10.6% |
| Corporate and eliminations | -740.2 | -703.7 | |
| Galenica Group | 2,864.8 | 2,751.9 | 4.1% |
1 Adjusted, excluding the effects of IFRS 16 and IAS 19
The Products & Care segment generated net sales of CHF 1,242.6 million (+4.0%) in the first nine months of the 2024 financial year. Of this, CHF 1,046.2 million (+3.8%) was accounted for by Retail (B2C), with Local Pharmacies contributing CHF 989.2 million (+4.1%, excluding Coop Vitality) and Pharmacies at Home accounting for CHF 57.2 million (-1.4%).
Professionals (B2B) increased sales to CHF 204.1 million (+5.8%), with Products & Brands contributing CHF 141.9 million (+5.4%) and Services for Professionals CHF 62.2 million (+6.8%).
Pharmacies at Home declined by 1.4% due to the streamlining of various services. The largest business area, Bichsel HomeCare, continued to grow pleasingly.
By way of comparison:
- Drug sales from bricks-and-mortar pharmacies in Switzerland (prescription [Rx] and OTC products) grew 3.0% in the reporting period (IQVIA, Pharmaceutical market Switzerland, YTD September 2024).
- Sales of medications from mail-order pharmacies in Switzerland (prescription [Rx] and OTC products) declined year-on-year by 2.8% (IQVIA, Pharmaceutical market Switzerland, YTD September 2024).
- The non-drugs segment of the Consumer Healthcare market also contracted by 0.7% in the period under review (IQVIA, Consumer Health Market Switzerland, YTD September 2024, nutrition, personal care, patient care, excluding COVID-19 self-tests, excluding OTC).
The growth drivers in Services for Professionals (+6.8%) 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 1.5% year on year (IQVIA, Consumer Health Market Switzerland, YTD September 2024, excluding COVID-19 self-tests).
The Logistics & IT segment generated net sales of CHF 2,362.5 million (+4.5%) in the first nine months of the 2024 financial year. Of this, CHF 2,262.8 million (+4.3%) was attributable to the Wholesale and CHF 116.7 million (+10.6%) to Logistics & IT Services.
Highlights:
By way of comparison:
Additional information on sales and further information can be found in the sales presentation Sales presentation .
Dates for the diary
| 23 January 2025 | 2024 Galenica Group sales |
| 11 March 2025 | Publication of Annual Results of the Galenica Group 2024 |
| 10 April 2025 | 2024 Annual General Meeting of the Galenica Group |
| 22 May 2025 | Galenica Group sales update April 2025 |
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 inte-grated solutions both for customers and patients as well as for pharmacies, drugstores, medical practices, hospitals, retirement and nursing homes, home care providers, wholesalers, pharma-ceutical 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: | 2014525 |
| End of Announcement | EQS News Service |
2014525 24-Oct-2024 CET/CEST
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