IE 11 is a very old browser and is not supported on this site.

Financial Performance Group

Management report

Galenica Group sales performed well in 2023, growing 4.4% to CHF 3,746.0 million. The adjusted1 EBIT increased slightly to CHF 191.3 million.

Net sales


Galenica Group CHF 3,746.0 million

EBIT adjusted1


Galenica Group CHF 191.3 million



Galenica Group

Strong sales development

Galenica Group sales performed well in 2023, growing 4.4% to CHF 3,746.0 million. Growth was driven in particular by the “Logistics & IT” segment, with sales 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% in the “Products & Brands” segment.

Adjusted for the exceptional sales related to COVID-19 (self-tests, COVID-19 vaccinations and rapid tests) in the prior-year period, the Galenica Group grew by 5.0%, with COVID-19-adjusted growth of 4.2% in the “Products & Care” segment and 5.5% in the “Logistics & IT” segment.

By way of comparison: the Swiss pharmaceutical market grew by 4.9% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 2023). This growth was driven by increased sales of high-priced medications. Sales volumes declined by -0.2% (IQVIA, Pharmaceutical Market Switzerland, 2023).

Special factors impact EBIT growth

EBIT increased year-on-year by 3.2% to CHF 199.1 million. The adjusted1 operating result (EBIT), i.e. excluding the impact of the IFRS 16 (Leases) and IAS 19 (Employee Benefits) accounting standards, increased slightly by 0.4% to CHF 191.3 million. The adjusted1 return on sales (ROS) fell by 5.3% year-on-year to 5.1%. The flat EBIT development was due to special factors totalling CHF 9.8 million.

On the one hand, HCI Solutions was obliged by the Swiss Competition Commission (COMCO) to pay a penalty of CHF 3.8 million for a well-known 2017 ruling still pending before the Federal Supreme Court. On the other hand, extraordinary value adjustments on customer receivables of around CHF 6.0 million occurred in the first half of 2023, especially in the wholesale business with doctors. In the second half of the year, a provision of CHF 3.0 million was also recognised for a possible sanction in the ongoing COMCO proceedings in the matter of “substantial central regulation”. However, these extraordinary costs were offset by an extraordinary valuation adjustment to inventories in the same amount. Adjusted for these special effects in the amount of CHF 9.8 million, adjusted1 EBIT would have increased by 5.5% to CHF 201.1 million.

Adjusted1 net profit from business activities increased by 2.8% to CHF 161.6 million (previous year: CHF 157.2 million). The reported net profit from business activities was CHF 165.7 million (previous year: CHF 157.3 million, +5.3%).

Completion of the strategic partnership and joint venture with Redcare Pharmacy N.V. (formerly Shop Apotheke Europe) resulted in a profit of CHF 120.4 million (profit from discontinued operations). Thanks to this extraordinary result, adjusted1 net profit increased to CHF 282.0 million (previous year: CHF 165.7 million). The share package of nearly 8% in Redcare Pharmacy received as part of the transaction generated an increase in value of EUR 95.5 million (CHF 83.0 million) in 2023.

Balance sheet remains strong

The Galenica Group’s balance sheet remained strong. Equity increased year-on-year to CHF 1,475.2 million (+18.1%), positively impacted by the transaction gain of CHF 120.4 million in connection with the establishment of the joint venture with Redcare Pharmacy and the appreciation of the equity stake in Redcare Pharmacy.

However, adjusted1 net debt, i.e. excluding lease liabilities, increased by CHF 67.5 million compared to the end of December 2022 and amounted to CHF 362.1 million, which corresponds to 1.5× adjusted1 EBITDA. The increase in net debt is attributable in particular to the ordinary investments in long-term assets, the establishment of the strategic investment in Redcare Pharmacy, acquisitions of subsidiaries and the building up of stocks to ensure the ability to deliver and guarantee the security of supply for medications.

Investments in the 2023 financial year totalled CHF 78.8 million (previous year: CHF 70.7 million). They were mainly attributable to the introduction of the new ERP (Enterprise Resource Planning) system at Galexis, the rebuilding and renovation of pharmacies and other operational sites, and investments in the development of the digital infrastructure in connection with the strategic “Omni-Channel” programme. The increase in investment activity compared to the previous year is due in particular to a temporarily more intensive expansion and renovation of pharmacies.

Before changes in net working capital, at CHF 201.3 million, adjusted1 operating cash flow remained slightly below the previous year’s level (CHF 220.4 million). Free cash flow after acquisitions amounted to CHF 49.3 million (previous year: CHF 57.9 million).

1) Excluding the effects of IAS 19 and IFRS 16. See chapter “Alternative performance measures”.

Galenica uses cookies to optimise the functions of the website and to ensure you enjoy the best possible experience. Use of cookies & disclaimer