Capital management
Galenica's capital is managed and monitored at Group level. The objective of capital management at Galenica is to ensure the continuity of operations, increase enterprise value on a sustainable basis, provide an adequate return to investors, provide the financial resources to enable investments in areas that deliver future benefits for patients and customers and further returns to investors.
Galenica defines the capital that it manages as invested interest-bearing liabilities and equity. Galenica uses a system of financial control based on various key performance indicators. Capital is monitored based on the gearing, for example, which expresses net debt as a percentage of shareholders' equity including non-controlling interests and is communicated regularly to management as part of internal reporting. The debt coverage expresses net debt as a multiple of earnings before interest, taxes, depreciation and amortisation (EBITDA). Debt coverage ratio provide information about the creditworthiness of the Group. Galenica has no covenants requiring a minimum level of debt coverage.
Total assets and shareholders' equity are adjusted for the cumulative effects of the IAS 19 and IFRS 16 adjustments and net debt is adjusted for lease liabilities.
Total assets
|
in thousand CHF |
2023 |
2022 |
|
Total assets |
2,990,952 |
2,612,825 |
|
Cumulative effects of IAS 19 adjustments |
–21,944 |
–2,466 |
|
Cumulative effects of IFRS 16 adjustments |
–229,056 |
–226,168 |
|
Total assets adjusted |
2,739,952 |
2,384,191 |
Net debt
|
in thousand CHF |
2023 |
2022 |
|
Current financial liabilities 1) |
69,990 |
218,464 |
|
Current lease liabilities |
50,484 |
50,173 |
|
Non-current financial liabilities 1) |
419,871 |
181,389 |
|
Non-current lease liabilities |
185,557 |
183,005 |
|
Cash and cash equivalents |
–116,159 |
–93,927 |
|
Interest-bearing receivables |
–11,607 |
–11,347 |
|
Net debt |
598,137 |
527,758 |
|
Lease liabilities (current and non-current) |
–236,041 |
–233,178 |
|
Net debt adjusted |
362,096 |
294,580 |
1) Excluding non-interest-bearing financial liabilities
Shareholders' equity
|
in thousand CHF |
2023 |
2022 |
|
Shareholders' equity |
1,475,196 |
1,249,461 |
|
Cumulative effects of IAS 19 adjustments |
955 |
14,340 |
|
Cumulative effects of IFRS 16 adjustments |
5,583 |
4,982 |
|
Shareholders' equity adjusted |
1,481,734 |
1,268,783 |
Equity ratio
|
|
2023 |
2022 |
|
Equity ratio 1) |
49.3% |
47.8% |
|
Equity ratio adjusted 2) |
54.1% |
53.2% |
1) Calculated as shareholders' equity divided by total assets
2) Calculated as shareholders' equity adjusted divided by total assets adjusted
Gearing
|
|
2023 |
2022 |
|
Gearing 1) |
40.5% |
42.2% |
|
Gearing adjusted 2) |
24.4% |
23.2% |
1) Calculated as net debt divided by shareholders' equity
2) Calculated as net debt adjusted divided by shareholders' equity adjusted
Debt coverage
|
|
2023 |
2022 (Restated) 1) |
|
Debt coverage 2) |
2.0 x |
1.8 x |
|
Debt coverage adjusted 3) |
1.5 x |
1.2 x |
1) Figures restated (refer to note 4 of the Consolidated financial statements 2023 of the Galenica Group)
2) Calculated as net debt divided by EBITDA
3) Calculated as net debt adjusted divided by EBITDA adjusted