Management report - Key figures Galenica Group
Key figures Galenica Group
In the 2022 financial year, the Galenica Group generated consolidated net sales of CHF 4,014.3 million, exceeding the CHF 4 billion mark for the first time. This corresponds to strong growth of 4.7% compared to the previous year.
Galenica Group CHF 4,014.3 million
EBIT adjusted1 and eliminated
Galenica Group CHF 200.8 million
Adjusted for additional sales in connection with COVID-19, which were exceptionally high in the previous year, sales growth was even high at 7.1%. After a normal seasonal flu wave and numerous cases of the Omicron coronavirus variant had led to strong growth in the first half of 2022, sales for the entire Group were also influenced in the second half of the year by the early onset of a heavy flu wave. This had a particular impact on the Products & Brands sector, which grew at an above-average rate of 19.8%. In addition, the extremely positive growth momentum of the previous year was continued in the 2022 financial year by the specialty pharmacy Mediservice (+12.9%).
By way of comparison, the Swiss pharmaceutical market grew by 6.1% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 2022). This growth was driven, among other things, by the heavy flu wave and numerous cases of the Omicron coronavirus variant. Sales volumes increased by 9.5% (IQVIA, Pharmaceutical Market Switzerland, 2022).
The adjusted¹ operating result (EBIT), i.e. excluding the effects of the IFRS 16 (Leases) and IAS 19 (Employee Benefits) accounting standards, fell by 5.8% to CHF 200.8 million. The adjusted¹ return on sales (ROS) fell year on year from 5.6% to 5.0%. Excluding the extraordinary results from the COVID-19 initiatives (estimated at CHF 25 million) and the sale of property at the headquarters in Bern 2021 (CHF 9.4 million), adjusted¹ EBIT growth amounted to a strong 12.4% compared to the previous year.
Adjusted¹ net profit decreased by 5.2% to CHF 165.7 million (previous year: CHF 174.8 million) due to the above mentioned one-time effects in the previous year. The reported net profit of CHF 165.9 million (previous year: CHF 168.2 million, -1.4%) was slightly down on the previous year.
Investments in the 2022 financial year totalled CHF 70.7 million (previous year: CHF 60.4 million). These were mainly attributable to the modernisation of the distribution centre in Lausanne-Ecublens and the introduction of the new ERP (Enterprise Resource Planning) system at Alloga and Galexis. In addition, there was increased investment in the development of the digital infrastructure in connection with the strategic “Omni-Channel” programme.
The Galenica Group’s balance sheet was further strengthened. Adjusted¹ shareholders’ equity increased by CHF 62.6 million compared to the previous year and now amounts to CHF 1,268.8 million. Adjusted¹ net debt, i.e. excluding leasing liabilities, amounted to CHF 294.6 million at the end of December 2022, which corresponds to 1.2× adjusted1 EBITDA (as at the end of 2021: 1.0×).
Before changes in net working capital, adjusted¹ operating cash flow remained at the previous year’s level of CHF 229.3 million. After net current assets had been exceptionally low in the previous year, these returned to a sustainable level in the reporting year. As a result, adjusted¹ operating cash flow decreased to CHF 184.4 million, which corresponds to a decrease of -34.9% compared to the previous year.
Free cash flow amounted to CHF 57.9 million (-70.3%). Besides the reduction in operating cash flow, the sharp decline can be explained by the net sales proceeds of CHF 38.2 million generated in the previous year from the sale of the property at Galenica's headquarters.
1) Excluding the effects of IAS 19 and IFRS 16. See chapter “Alternative performance measures”.