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Notes to the consolidated financial statements of the Galenica Group

1. Group organisation

1. Group organisation

General information

Galenica is a fully-integrated healthcare service provider in Switzerland. Galenica operates a network of pharmacies, develops and offers own brands and products, exclusive brands and products from business partners as well as a variety of on-site health services and tests for customers. Galenica is also a provider of pre-wholesale and wholesale distribution and database ­services in the Swiss healthcare market. By acquiring the Diagnostics Group (Labor Team) in 2025, Galenica is adding a diagnostic service provider to its healthcare network.

The parent company is Galenica Ltd., a Swiss public limited company with its headquarters in Bern. The registered office is at Untermattweg 8, 3027 Bern, Switzerland. Shares in Galenica Ltd. are traded on the SIX Swiss Exchange under ­securities no. 36067446 (ISIN CH0360674466).

The Board of Directors released the consolidated financial statements 2025 for publication on 5 March 2026. The 2025 consolidated financial statements will be submitted for approval to the Annual General Meeting on 21 April 2026.


2. Accounting principles

2. Accounting principles

Basis of preparation

The consolidated financial statements of Galenica have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standard Board (IASB), as well as the interpretations of the IFRS Interpretations Committee (IFRIC) and the provisions of Swiss law.

The consolidated financial statements are based on the financial statements of the individual companies of Galenica, ­prepared in accordance with uniform accounting principles. The reporting period comprises twelve months to 31 December.

Galenica's consolidated financial statements are prepared in Swiss francs (CHF) and, unless otherwise indicated, figures are rounded to the nearest CHF 1,000.

Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. Totals are calculated using the underlying amount rather than the presented rounded number.

Foreign currencies are not material for the consolidated financial statements.

Estimation uncertainty, assumptions and judgments

The preparation of the Group's consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense, and the disclosure of contingent liabilities as at the reporting date. Although these estimates and assumptions are made on the basis of all available information and with the greatest of care, the actual results may differ. This applies primarily to estimates and assumptions made with regard to the items set out below.

Leases (note 15)

IFRS 16 defines the lease term as the non-cancellable period of a lease together with the options to extend or terminate a lease, if the lessee is reasonably certain to exercise that option. Where a lease includes the option for the Group to extend the lease term, Galenica applies judgment in assessing whether it is reasonably certain that the option will be exercised. This will take into account the length of the time remaining before the option is exercisable, current trading, future trading forecasts as to the ongoing profitability of the point of sale and the level and type of planned future capital investment. A reassessment of the remaining life of the lease could result in a recalculation of the lease liability and a material adjustment to the associated balances.

Goodwill and intangible assets (note 16)

Goodwill and other intangible assets with an indefinite useful life are tested for impairment at least once a year. This involves estimating the value in use of the cash-generating unit (CGU) or group of CGUs to which the goodwill is allocated. It also requires a forecast of expected future cash flows as well as the application of an appropriate discount rate to calculate the present value of these cash flows.

Employee benefit plans and other non-current employee benefits (note 23)

The costs of the employee benefit plans and other long-term employee benefits are determined using actuarial valuations. These valuations involve making assumptions about the discount rate, future salary and pension developments, mortality and the employee turnover rate. Galenica considers the discount rate, the selection of mortality tables and the development of salaries to be key assumptions.

Fair value of contingent consideration liabilities from business combinations (note 25)

Contingent consideration, resulting from business combinations, is valued at fair value at the acquisition date as part of the business combination. When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value at each reporting date. The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount rate.

Amendments to IFRS Accounting Standards

As at 1 January 2025 Galenica adopted the following amended IFRS Accounting Standards:

  • Amendments to IAS 21 – Lack of exchangeability

This change has no or no material impact on the financial position, financial performance and cash flows of Galenica nor on disclosures in these consolidated financial statements. Galenica has not early adopted any other standard or interpretation that has been issued but is not yet effective.

Future amendments to IFRS Accounting Standards

The IASB has issued various new and amended standards and interpretations with effective dates in the financial year 2026 or later. Galenica has not early adopted any of the following amendments to standards or interpretations that are potentially relevant for Galenica. Galenica intends to apply the new or amended standards for the first time in the financial year beginning on the date shown below:

  • Amendments to the Classification and Measurement of Financial Instruments — Amendments to IFRS 9 and IFRS 7 (1 January 2026)
  • Annual Improvements to IFRS Accounting Standards - Volume 11 (1 January 2026)
  • IFRS 18 – Presentation and Disclosure in financial statements (1 January 2027)

Galenica is currently working to identify all the impacts the introduction of IFRS 18 will have on the financial statements and related notes. Based on a preliminary analysis, Galenica does not expect a material impact on the consolidated financial statement for the other new or amended standards.


3. Operating segment information

3. Operating segment information

Galenica operates mainly in Switzerland within two operating segments Products & Care and Logistics & IT. The CEO of Galenica acting as chief operating decision maker (CODM) allocates resources and monitors performance of the Group's operating segments Products & Care and Logistics & IT on the basis of information prepared in accordance with IFRS Accounting Standards, with exceptions described below.

Based on the changed organisational and management structure, Galenica has revised its segments and CODM-Reporting. The main change is the reallocation of internal IT services from the Logistics & IT segment to Group Services. This reallocation affects only intra-group IT services. External IT services remain within the Logistics & IT segment. Furthermore Diagnostics Group (Labor Team) was added to the Products & Care segment.

Basis of preparation (Adjustments & Eliminations)

Galenica adjusts its internal reporting compared with the reported IFRS results to enhance comparability by neutralising certain IFRS‑driven valuation effects that management considers to be outside operational performance. Under IFRS 16, lease contracts—particularly relevant due to Galenica’s extensive pharmacy network—significantly affect the balance sheet and the income statement. For management reporting, leases are treated as operating leases, with all lease expenses recognised evenly in operating costs, while depreciation, interest and the related tax effects are removed.

Following recent acquisitions, depreciation, amortisation and impairment arising from IFRS 3 purchase price allocations are excluded from operational performance metrics. This adjustment applies prospectively from the 2025 financial year.

Value changes of investments in associates or joint ventures are not disclosed in segment reporting, as they do not reflect normal operating activities and may distort period‑to‑period comparability.

Furthermore, defined benefit plans and long‑service awards resulted from IAS 19 are recognised at Group level.

These valuation differences are presented in the segment reporting under the column Adjustments & Eliminations.

Operating activities involve the sale of goods and services between the operating segments.

The operating result (EBIT) comprises all operating income generated and expenses incurred in the corresponding segments. Financial income and expenses as well as income taxes are reported at Group level only and not allocated to the segments. The assets and liabilities include all items of the statement of financial position that can be directly or reasonably allocated to a segment.

Sale of goods and services between the operating segments and resulting unrealised gains are eliminated in the Adjustments & Eliminations column. In addition, Adjustments & Eliminations include adjustments recorded on Group level which mainly consist of costs for IAS 19 from defined benefit plans and long-service awards.

Segment assets and liabilities include loans and current accounts held with respect to other segments. These positions are eliminated in the Adjustments & Eliminations column.

Products & Care

The Products & Care segment consists of the following business areas: «Pharmacies Omni-Channel», «Products & Brands», «Services & Production» and «Diagnostics».

The «Pharmacies Omni-Channel» business area provides offerings for patients, end customers, business customers and partners in the healthcare sector. This area includes both point-of-sale and mail-order operations. Galenica manages a network of 563 locations, which is the largest pharmacy network in Switzerland. The company operates 381 owned pharmacies. Galenica's own pharmacies comprise the Amavita brand with 202 branches and the Sun Store brand with 86 branches. Galenica also operates a chain of 87 pharmacies in partnership with Coop under the Coop Vitality brand. Galenica's pharmacy network also covers the speciality pharmacy Mediservice in partnership with Redcare Pharmacy N.V., which is focused on medication for treatment of patients at home, 5 majority interests in pharmacies and 182 Winconcept partner pharmacies.

The «Products & Brands» and «Services & Production» business areas are dedicated to the development, marketing and sale of healthcare services and products through various Galenica distribution channels.

The «Diagnostics» business area provides a comprehensive range of services, including laboratory medicine, pathology and specialised personalised diagnostics.

Logistics & IT

The Logistics & IT segment comprises the two business areas «Wholesale» and «Logistics & IT Services». These provide services for all those involved in the healthcare sector – pharmacies, drugstores, doctors, hospitals and care homes, partners and suppliers. Their activities focus on optimising and further developing the logistics services and service offering as well as providing innovative solutions that promote digitalisation in the healthcare market.

«Wholesale» plays an important role in the pharmaceutical supply chain. As a pharmaceutical wholesaler, «Wholesale» ensures on-schedule delivery within short deadlines to pharmacies, drugstores, doctors, hospitals and care homes throughout Switzerland.

«Logistics & IT Services» offers pharmaceutical and healthcare companies a broad range of specialised pre-wholesale services, from storage and distribution of products in Switzerland to debt collection. The companies of the «Logistics & IT Services» also offer solutions for the healthcare market. They operate comprehensive databases that provide additional knowledge for all service providers in the Swiss healthcare market and develop management solutions tailored specifically to the needs of the healthcare market. «Logistics & IT Services» is the leading provider of master data systems for Switzerland's entire healthcare market and publishes printed and electronic technical information on pharmaceutical products as well as complete management solutions for pharmacies.

Group Services

The activities included within Group Services mainly comprise Galenica's central operations, which include Group Management and centralised corporate functions such as Group internal IT services, Finance, Investor Relations, Insurance, Indirect procurement, Human Resources, Legal & Board Services, Communications and Transformation.

Corporate charges management fees to the group companies for the organisational and financial management services that it provides.

Operating segment information 2024

Operating segment information 2024 has been restated to the changed organisational and management structure and the internal financial reporting to the CODM.

Operating segment information 2025

Operating segment information 2025

in thousand CHF

Products & Care

Logistics & IT

Group Services

Adjustments & Eliminations

Galenica Group

Net sales

1,816,417

3,332,615

153,656

–1,167,066

4,135,621

– of which intersegmental net sales

113,629

906,845

146,592

–1,167,066

– of which net sales to third parties

1,702,788

2,425,770

7,063

4,135,621

Cost of goods

–977,048

–3,026,028

1,012,760

–2,990,316

Personnel costs

–397,149

–127,288

–89,004

3,124

–610,317

Share of profit from associates and joint ventures

7,731

223

-2,287 1)

5,667

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

197,365

75,832

20,740

54,844 2)

348,782

Depreciation, amortisation and impairment

–22,192

–14,096

–22,824

-57,291 3)

–116,403

Earnings before interest and taxes (EBIT)

175,173

61,736

–2,084

–2,447

232,378

Interest income

 

 

 

 

1,126

Interest expense

 

 

 

 

–13,457

Other net financial result

 

 

 

 

2,323

Earnings before taxes (EBT)

 

 

 

 

222,371

Income taxes

 

 

 

 

–38,488

Profit from continuing operations

 

 

 

 

183,883

 

 

 

 

 

 

Assets

1,984,800

955,905

567,801

-211,366 4)

3,297,140

Investments in associates and joint ventures

149,427

271

–1,809

147,888

Liabilities

397,978

548,298

1,036,720

-170,858 5)

1,812,138

 

 

 

 

 

 

Investments in property, plant and equipment

20,430

8,539

2,799

31,767 6)

Investments in intangible assets

2,863

9,563

17,098

–147

29,377 7)

 

 

 

 

 

 

Employees as at 31 December (FTE)

4,728

1,285

545

6,558

1) Including impairments of investments in associates of CHF -2.4 million

2) Including lease expense adjustment (IFRS 16) of CHF 57.1 million, impairments of investments in associates of CHF -2.4 million and effects of IAS 19 from defined benefit plans and long-service awards of CHF 0.2 million

3) Including depreciation and impairment of right-of-use asset adjustment (IFRS 16) of CHF -54.2 million and depreciation and impairment of intangible asset adjustment resulted from IFRS 3 of CHF -3.2 million

4) Of which elimination of intercompany positions of CHF -426.8 million, considering right-of-use assets (IFRS 16) of CHF 236.8 million, intangible assets (IFRS 3) of CHF -3.2 million and other unallocated amounts of CHF -18.2 million

5) Of which elimination of intercompany positions of CHF -426.8 million, considering lease liabilities (IFRS 16) of CHF 242.6 million and other unallocated amounts of CHF 13.4 million

6) Of which non-cash investments of CHF 5.8 million

7) Of which non-cash investments of CHF 3.5 million

Geographic information 2025

in thousand CHF

Switzerland

Other countries

Galenica Group

Net sales to third parties

4,084,732

50,889

4,135,621

Non-current assets 1)

2,072,967

277

2,073,244

1) Without financial assets and deferred tax assets

Operating segment information 2024 (restated)

Operating segment information 2024 (restated)

in thousand CHF

Products & Care

Logistics & IT

Group Services

Adjustments & Eliminations

Galenica Group

Net sales

1,700,226

3,180,457

140,222

–1,099,823

3,921,081

– of which Intersegmental net sales

107,763

858,138

133,922

–1,099,823

– of which net sales to third parties

1,592,462

2,322,319

6,301

3,921,081

Cost of goods

–909,819

–2,891,227

957,806

–2,843,240

Personnel costs

–378,146

–125,415

–82,499

3,335

–582,726

Share of profit from associates and joint ventures

6,035

–17

191

6,209

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

180,534

69,193

19,248

55,170 1)

324,144

Depreciation, amortisation and impairment

–20,464

–15,393

–21,226

-52,695 2)

–109,778

Earnings before interest and taxes (EBIT)

160,070

53,800

–1,977

2,475

214,367

Interest income

 

 

 

 

2,017

Interest expense

 

 

 

 

–12,654

Other net financial result

 

 

 

 

10,868

Earnings before taxes (EBT)

 

 

 

 

214,597

Income taxes

 

 

 

 

–30,898

Profit from continuing operations

 

 

 

 

183,699

 

 

 

 

 

 

Assets

1,622,585

940,666

742,940

-235,293 3)

3,070,898

Investments in associates and joint ventures

147,633

122

–2,669

145,087

Liabilities

341,481

543,611

830,684

-196,722 4)

1,519,053

 

 

 

 

 

 

Investments in property, plant and equipment

23,319

8,776

3,928

36,023 5)

Investments in intangible assets

1,388

17,061

18,444

–151

36,742 6)

 

 

 

 

 

 

Employees as at 31 December (FTE)

4,355

1,268

496

6,119

1) Including lease expense adjustment (IFRS 16) of CHF 55.7 million and effects of IAS 19 from defined benefit plans and long-service awards of CHF 0.5 million

2) Including depreciation and impairment of right-of-use asset adjustment (IFRS 16) of CHF -52.9 million

3) Of which elimination of intercompany positions of CHF -445.1 million, considering right-of-use assets (IFRS 16) of CHF 228.8 million and other unallocated amounts of CHF -19.0 million

4) Of which elimination of intercompany positions of CHF -445.1 million, considering lease liabilities (IFRS 16) of CHF 234.6 million and other unallocated amounts of CHF 13.8 million

5) Of which non-cash investments of CHF 1.5 million

6) Of which non-cash investments of CHF 4.1 million

Geographic information 2024

in thousand CHF

Switzerland

Other countries

Galenica Group

Net sales to third parties

3,874,423

46,658

3,921,081

Non-current assets 1)

1,747,311

414

1,747,725

1) Without financial assets and deferred tax assets


4. Business combinations

4. Business combinations

Business combinations 2025

Acquisition of Diagnostics Group GmbH. On 9 September 2025, Galenica acquired 100% of the interests in the Swiss company Diagnostics Group GmbH. Diagnostics Group GmbH is the parent company of the Labor Team Group with its subsidiaries Labor Team Holding AG, Labor Team W AG, Labor Team (Liechtenstein) AG (Principality of Liechtenstein based), Haemoclot AG and Modern-Path SA. The group offers a comprehensive range of services from laboratory medicine and pathology to personalised special diagnostics.

The total purchase consideration amounted to CHF 238.4 million and was fully settled in cash. The fair value of the net identifiable assets amounts to CHF 112.1 million at the acquisition date. The goodwill of CHF 130.2 million was allocated to the operating segment Products & Care. The goodwill corresponds to added value based on the acquirer-specific synergies expected to arise from the acquisition in expanding sale forces, synergies with pharmacies, pharma logistics and Home-Care-Services, procurement synergies and the know-how of the employees gained. Transaction costs amounted to CHF 1.1 million and were expensed in the consolidated statement of income. Remaining 20% of the shares of Modern-Path SA were retained by the previous owner. Non-controlling interests have been measured at the proportionate share of net identifiable assets. The remaining shareholders have a put option to sell their shares to Galenica which gives rise to a financial liability in the amount of CHF 4.2 million.

Acquisition of pharmacies. Galenica acquired 100% of the interests in pharmacies in various locations in Switzerland. Upon acquisition, the pharmacies were merged with Galenicare Ltd.

The total purchase consideration amounted to CHF 29.9 million, of which 29.2 million was settled in cash and CHF 0.7 million were recognised as deferred consideration. The fair value of the net identifiable assets amounts to CHF 10.3 million at the acquisition date. The goodwill of CHF 19.6 million was allocated to the operating segment Products & Care and corresponds to the added value of the pharmacies based on their locations and the know-how of the employees gained. Transaction costs were not material.

Business combinations

in thousand CHF

Diagnostics Group

Pharmacies

2025 Total

2024 Total

Cash and cash equivalents

10,577

4,020

14,597

3,580

Trade receivables

8,774

3,609

12,383

3,367

Inventories

5,634

1,261

6,895

1,751

Property, plant and equipment

20,476

232

20,708

382

Right-of-use assets

12,779

4,083

16,862

4,376

Intangible assets

145,655

145,655

Financial assets

1,762

52

1,814

Other current and non-current assets

3,863

3,817

7,680

742

Trade payables

–5,131

–1,262

–6,393

–1,593

Financial liabilities

–41,785

–41,785

Lease liabilities

–12,779

–4,083

–16,862

–4,376

Net deferred tax liabilities

–21,382

6

–21,376

95

Employee benefit liabilities

–4,474

–4,474

Other current and non-current liabilities

–11,908

–1,470

–13,378

–1,915

Fair value of net assets

112,062

10,264

122,326

6,409

Goodwill

130,155

19,588

149,744

20,168

Non-controlling interests

–3,860

–3,860

Purchase consideration

238,357

29,853

268,210

26,577

Cash acquired

–10,577

–4,020

–14,597

–3,580

Deferred consideration

–666

–666

Net cash flow from current business combinations

227,780

25,167

252,947

22,997

Payment of consideration due to previous business combinations

 

 

22,500

64

Net cash flow from business combinations

 

 

275,447

23,061

Pro forma figures for acquisitions made in 2025 for the full 2025 financial year

Since their inclusion in Galenica's scope of consolidation, the businesses acquired contributed net sales of CHF 62.2 million and an operating result (EBIT) of CHF 5.9 million to the Group's results. If these acquisitions had occurred on 1 January 2025, they would have contributed additional net sales of CHF 87.1 million and increased EBIT by CHF 4.3 million.

Business combinations 2024

Acquisition of pharmacies. Galenica acquired 100% of the interests in pharmacies in various locations in Switzerland. Upon acquisition, the pharmacies were merged with Galenicare Ltd.

The total purchase consideration amounted to CHF 23.0 million and was fully settled in cash. The fair value of the net identifiable assets amounts to CHF 6.4 million at the acquisition date. The goodwill of CHF 20.2 million was allocated to the operating segment Products & Care and corresponds to the added value of the pharmacies based on their locations and the know-how of the employees gained. Transaction costs were not material.

Accounting principles business combinations

Subsidiaries, associates and joint ventures acquired during the reporting period are included in the financial statements as at the date when control, significant influence or joint control was obtained. Companies sold during the reporting period are included up to the date when control, significant influence or joint control was lost. The profit or loss on deconsolidation is recognised in operating income or other operating costs.

Contingent consideration is measured at fair value at the acquisition date and qualifies as a financial instrument. It is remeasured to fair value and any difference is recognised in other financial income or other financial expenses.

The difference arise from the acquisition of additional non-controlling interests in fully consolidated companies (purchase consideration less proportionate carrying amount of non-controlling interests) is considered to be an equity transaction and is thus taken directly to retained earnings in shareholders' equity.


5. Net sales

5. Net sales

Net sales 2025

Based on the changed organisational and management structure of Galenica, the internal reporting and disaggregation of net sales has been adjusted accordingly. Net sales information for the previous period has been restated to conform to the new presentation.

Net sales 2025

in thousand CHF

Sale of goods

Sale of services

Total net sales

Intersegmental net sales

Total net sales to third parties

of which sale of goods to third parties

of which sale of services to third parties

Pharmacies Omni-Channel

1,366,096

107,234

1,473,330

–16,110

1,457,220

1,366,084

91,135

Products & Brands

189,564

4,668

194,233

–92,439

101,794

97,467

4,327

Services & Production

114,627

5,248

119,875

–16,770

103,105

97,883

5,222

Diagnostics

40,670

40,670

40,670

40,670

Products & Care 1)

1,663,373

153,044

1,816,417

–113,629

1,702,788

1,561,434

141,354

Wholesale

3,246,020

9,275

3,255,295

–901,269

2,354,027

2,347,247

6,780

Logistics & IT Services

49

79,591

79,640

–7,897

71,743

90

71,653

Logistics & IT 1)

3,246,068

86,547

3,332,615

–906,845

2,425,770

2,347,337

78,433

Group Services

153,656

153,656

–146,592

7,063

7,063

Eliminations 2)

–1,000,670

–166,396

–1,167,066

1,167,066

Galenica Group

3,908,771

226,850

4,135,621

4,135,621

3,908,771

226,850

1) Including eliminations of intercompany net sales

2) Eliminations of intersegmental net sales

Net sales 2024 (restated)

Net sales 2024 (restated)

in thousand CHF

Sale of goods

Sale of services

Total net sales

Intersegmental net sales

Total net sales to third parties

of which sale of goods to third parties

of which sale of services to third parties

Pharmacies Omni-Channel

1,302,713

101,608

1,404,321

–12,774

1,391,547

1,302,705

88,842

Products & Brands

188,462

1,732

190,194

–89,728

100,466

98,943

1,523

Services & Production

110,381

4,858

115,239

–14,791

100,449

95,629

4,820

Products & Care 1)

1,595,357

104,869

1,700,226

–107,763

1,592,462

1,497,277

95,185

Wholesale

3,095,583

9,640

3,105,223

–853,435

2,251,789

2,244,698

7,090

Logistics & IT Services

128

77,368

77,496

–6,966

70,530

168

70,362

Logistics & IT 1)

3,095,711

84,745

3,180,457

–858,138

2,322,319

2,244,866

77,453

Group Services

140,222

140,222

–133,922

6,301

6,301

Eliminations 2)

–948,925

–150,897

–1,099,823

1,099,823

Galenica Group

3,742,143

178,938

3,921,081

3,921,081

3,742,143

178,938

1) Including eliminations of intercompany net sales

2) Eliminations of intersegmental net sales

Accounting principles net sales

Net sales represent revenue from contracts with customers from the sale of goods or services. Revenue is recognised in the amount that reflects the consideration to which Galenica expects to be entitled when the promised goods or services are transferred to customers.

Where invoices are issued, payment terms in Switzerland usually range between 10 and 30 days, for both goods and services.

Sale of goods

For retail pharmacy sales, revenue is recognised at the point in time when the customer takes possession of the products at the point-of-sale and for wholesale transactions upon shipment of the products to the customer.

Galenica has determined that its customer loyalty programs represent separate performance obligations to which revenue is allocated based on relative stand-alone selling prices, which considers historical redemption patterns. Revenue is deferred and recognised when the award credits are redeemed, which is typically 2 to 4 months after the sale of the initial products. At the end of each period, unredeemed credits are reflected as contract liabilities and included in trade and other payables in the consolidated statement of financial position.

Refund liabilities from contracts with customers are estimated based on actual sales volumes for the financial year and refund percentages as agreed with customers. These liabilities are usually settled in the subsequent financial year. ­Revenue from gift cards purchased by customers is deferred as contract liabilities until goods or services are transferred, which is typically within 12 months after the sale of the gift card. Any amounts not expected to be redeemed are recognised based on historical redemption patterns.

Customer returns are not material.

Sale of services

Revenue from services includes logistics services, healthcare and consultation services, diagnostic services, the processing and sale of information and IT services as well as other contractually agreed services.

In the business area "Pharmacies Omni-Channel" sale of services mainly includes healthcare services and consultations sales. In the business area "Diagnostics" sale of services mainly includes diagnostic services. Depending on the service the performance obligations are either satisfied over time or at a point in time (i.e. when consultation or diagnostic service took place).

In the business area "Logistics & IT Services" sale of services mainly includes pre-wholesale services and group external IT services and in the business area "Wholesale" sale of service mainly includes various logistic services. Depending on the service the performance obligations are either satisfied over time or at a point in time (i.e. when volumes are handled).


6. Other income

6. Other income

Other income

in thousand CHF

2025

2024

Income from own work capitalised

10,216

9,491

Rental income from operating leases

467

551

Gain on disposal of property, plant and equipment

351

3,308

Other operating income

3,242

2,872

Other income

14,277

16,223


7. Personnel costs

7. Personnel costs

Personnel costs

in thousand CHF

2025

2024

Salaries and wages

499,050

476,846

Social security costs and pension expenses

71,315

68,459

Other personnel costs

39,953

37,422

Personnel costs

610,317

582,726

 

 

 

Average number of employees (FTE)

6,503

6,090

Social security costs and pension expenses contain expenses for defined benefit plans of CHF 35.1 million (previous year: expenses of CHF 33.9 million) (refer to note 23). Salaries and wages includes expenses for share-based payments of CHF 7.4 million (previous year: CHF 6.0 million) (refer to note 28).


8. Other operating costs

8. Other operating costs

Other operating costs

in thousand CHF

2025

2024

Maintenance and repairs

40,745

32,857

Transport and shipping costs

50,341

44,116

Other operating and production costs

18,131

21,420

Rental and other lease expenses 1)

12,241

10,510

Administration costs

44,725

50,375

Marketing and sales costs

37,834

32,538

Non-income taxes

2,008

1,579

Loss on disposal of property, plant and equipment

125

6

Other operating costs

206,150

193,402

1) Of which other lease expenses (incidental expenses) of CHF 5.0 million (previous year: CHF 3.9 million)

Research and development

During the reporting period, expenses for research and development totalling CHF 8.3 million were recognised directly in other operating costs (previous year: CHF 14.0 million).


9. Financial result

9. Financial result

Financial result

in thousand CHF

2025

2024

Interest income

1,018

1,619

Net interest income from employee benefit plans

108

398

Net remeasurement of change in fair value of contingent consideration liabilities

4,257

10,600

Other financial income

143

337

Net gain on foreign exchange

105

425

Financial income

5,632

13,379

 

 

 

Interest expense

10,596

9,538

Interest expense on lease liabilities

2,860

3,116

Other financial costs

2,183

494

Financial expenses

15,639

13,148

 

 

 

Net financial result

10,008

–230


10. Earnings per share

10. Earnings per share

Number of outstanding shares

 

2025

2024

Total number of shares

50,000,000

50,000,000

Average number of treasury shares

–154,450

–157,074

Average number of outstanding shares

49,845,550

49,842,926

Effect from share-based payments

41,487

43,301

Theoretical average number of outstanding shares (diluted)

49,887,037

49,886,227

Earnings per share

 

2025

2024

Earnings per share

 

 

Net profit – attributable to shareholders of Galenica Ltd. (in thousand CHF)

181,099

182,951

Earnings per share (in CHF)

3.63

3.67

Diluted earnings per share (in CHF)

3.63

3.67

Earnings per share from continuing operations

 

 

Profit from continuing operations - attributable to shareholders of Galenica Ltd. (in thousand CHF)

182,705

183,031

Earnings per share from continuing operations (in CHF)

3.67

3.67

Diluted earnings per share from continuing operations (in CHF)

3.66

3.67

Earnings per share from discontinued operations

 

 

Profit from discontinued operations - attributable to shareholders of Galenica Ltd. (in thousand CHF)

–1,607

–80

Earnings per share from discontinued operations (in CHF)

–0.03

Diluted earnings per share from discontinued operations (in CHF)

–0.03


11. Income taxes

11. Income taxes

Income taxes

in thousand CHF

2025

2024

Current income taxes

35,384

33,732

Income taxes of prior periods

751

–1,419

Deferred income taxes

2,352

–1,415

Income taxes from continuing operations

38,488

30,898

Income taxes related to discontinued operations

–414

–21

Total income taxes

38,074

30,877

Tax reconciliation

in thousand CHF

2025

2024

Earnings before taxes from continuing operations

222,371

214,597

Earnings before taxes from discontinued operations

–2,021

–101

Earnings before income taxes

220,349

214,496

Weighted income tax rate in % of accounting profit

18.0%

18.3%

Expected income taxes

39,554

39,290

Effects of changes in tax rates

17

373

Effects of unrecognised losses in the current year

32

72

Realisation of unrecognised tax losses of prior periods

–8

–43

Recognition of tax losses of prior periods

–390

Remeasurement contingent consideration liabilities from business combinations (not taxable)

–873

–2,173

Effects of changes in investments (write-down/reversal of write down)

–690

–7,122

Income taxes of prior periods

751

–1,419

Other items

–710

2,289

Effective income taxes

38,074

30,877

Effective income tax rate in % of accounting profit

17.3%

14.4%

– of which income taxes attributable to continuing operations (reported in the statement of income)

38,488

30,898

– effective income tax rate attributable to continuing operations in % of EBT

17.3%

14.4%

– of which income taxes attributable to discontinued operations

–414

–21

Deferred taxes

 

 

 

2025

 

2024

in thousand CHF

Deferred tax assets

Deferred tax liabilities

Net carrying amount

Deferred tax assets

Deferred tax liabilities

Net carrying amount

Current assets

4,081

–27,449

–23,368

3,871

–26,686

–22,815

Property, plant and equipment

10

–2,853

–2,843

24

–2,122

–2,098

Right-of-use assets

–39,931

–39,931

–38,835

–38,835

Intangible assets

2,147

–46,413

–44,266

2,909

–25,561

–22,652

Investments

–690

–690

Financial assets

–1,013

–1,013

–2,025

–2,025

Lease liabilities

41,114

41,114

39,988

39,988

Provisions

–272

–272

–737

–737

Employee benefit plans

2,978

2,978

3,155

3,155

Other temporary differences

389

–550

–160

641

–1,823

–1,182

Shareholders' equity

718

718

614

614

Deferred taxes due to temporary differences

51,438

–118,481

–67,043

51,203

–98,480

–47,277

Tax loss carryforwards

622

622

5,098

5,098

Gross deferred taxes

52,060

–118,481

–66,422

56,301

–98,480

–42,179

Netting of assets and liabilities

–47,324

47,324

 

–51,837

51,837

 

Net deferred taxes

4,735

–71,157

 

4,464

–46,643

 

Analysis of net deferred taxes

in thousand CHF

2025

2024

1 January

–42,179

–64,515

Recognised as income taxes in profit or loss

 

 

– Change in temporary differences

2,154

–1,826

– Fiscal realisation of recognised tax loss carryforwards

–4,352

–563

– Tax loss carryforwards taken into account for the first time

–82

4,178

– Tax loss carryforwards no longer taken into account

–56

– Effects of changes in tax rates

–17

–373

Recognised in other comprehensive income

–748

20,728

Recognised in shareholders' equity (related to share-based payments)

242

71

Addition to scope of consolidation

–21,376

95

Translation differences

–8

27

31 December

–66,422

–42,179

Temporary differences on which no deferred taxes have been recognised

in thousand CHF

2025

2024

Investments in subsidiaries

387,501

337,862

Tax loss carryforwards and tax credits

 

 

2025

 

2024

in thousand CHF

Tax loss carryforwards / tax credits

Tax effect

Tax loss carryforwards / tax credits

Tax effect

Tax loss carryforwards and tax credits

3,330

727

28,805

5,116

– of which capitalised as deferred tax assets

–2,703

–622

–5,007

–1,122

– of which netted with deferred tax liabilities

–23,666

–3,976

Unrecognised tax loss carryforwards and tax credits

627

105

132

18

Of which expire:

 

 

 

 

– within 1 year

– in 2 to 5 years

46

6

– in more than 5 years

581

99

132

18

OECD Pillar Two model rules

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses tax challenges from the digital economy, introducing the Global Anti-Base Erosion Model Rules (Pillar Two), applicable to multinational enterprises (MNEs) with revenues over EUR 750 million. Galenica is within the scope of the OECD Pillar Two model rules. Galenica applies the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

The Pillar Two model rules were adopted in Switzerland at the end of 2023 and are applicable starting from 1 January 2024. According to these rules, Galenica is considered a multinational enterprise to which the Pillar Two rules shall be applied. At the same time, Pillar Two legislation has been enacted or substantively enacted in several other jurisdictions in which the Group operates effective for the financial year beginning 1 January 2024.

Galenica has performed an assessment and reporting of its potential exposure to Pillar Two income taxes based on the 2024 country-by-country reporting and 2025 financial information for the constituent entities in the Group. The Pillar Two effective tax rates in all of the jurisdictions in which the Group operates is above 15%.

Galenica continues to monitor legislative developments related to Pillar Two in Switzerland and other relevant jurisdictions to assess any potential future impact on its consolidated financial position, performance and cash flows.


12. Trade and other receivables

12. Trade and other receivables

Trade and other receivables

in thousand CHF

2025

2024

Trade receivables

471,003

468,568

Bad debt allowances

–9,817

–8,286

Other receivables

65,590

39,717

Trade and other receivables

526,776

499,999

Change in bad debt allowances for trade receivables

in thousand CHF

2025

2024

1 January

–8,286

–16,044

Addition

–5,815

–1,743

Use

671

7,460

Reversal

3,612

2,042

Translation differences

1

–1

31 December

–9,817

–8,286

Maturity profile of trade receivables

 

 

 

2025

 

 

2024

in thousand CHF

Gross trade receivables

Bad debt allowances

Net trade receivables

Gross trade receivables

Bad debt allowances

Net trade receivables

Not past due

360,178

–4,434

355,744

403,591

–3,596

399,995

Past due:

 

 

 

 

 

 

– 1 to 30 days

87,796

–1,152

86,644

46,149

–1,016

45,133

– 31 to 60 days

10,932

–624

10,308

7,192

–831

6,361

– 61 to 90 days

4,780

–591

4,189

2,466

–791

1,675

– more than 90 days

7,317

–3,015

4,302

9,170

–2,052

7,118

Total

471,003

–9,817

461,186

468,568

–8,286

460,282

Accounting principles trade and other receivables

Trade receivables are initially measured at the transaction price determined in accordance with IFRS 15. Other receivables are carried at original invoice value. Allowances for uncollectable amounts are estimated based on expected credit losses, using life-time expected credit losses for trade receivables (simplified approach).

Any impairment losses are recognised in profit or loss in other operating costs.


13. Inventories

13. Inventories

Inventories

 

 

 

2025

 

 

2024

in thousand CHF

Raw material and merchandise 1)

Semi-finished and finished goods 2)

Total inventories

Raw material and merchandise 1)

Semi-finished and finished goods 2)

Total inventories

Gross carrying amount as at 1 January

371,881

10,969

382,850

366,064

9,550

375,614

Change in inventories

16,975

298

17,272

4,056

1,407

5,463

Addition to scope of consolidation

1,766

5,129

6,895

1,751

1,751

Translation differences

–23

–6

–29

10

12

22

Gross carrying amount as at 31 December

390,598

16,389

406,988

371,881

10,969

382,850

 

 

 

 

 

 

 

Allowance as at 1 January

–17,860

–1,935

–19,795

–17,006

–1,512

–18,518

Addition

–4,710

–74

–4,784

–3,821

–672

–4,493

Reversal / use

2,608

382

2,989

2,971

252

3,223

Translation differences

3

3

–3

–3

–6

Allowance as at 31 December

–19,958

–1,628

–21,586

–17,860

–1,935

–19,795

 

 

 

 

 

 

 

Net carrying amount as at 31 December

370,640

14,761

385,401

354,021

9,034

363,055

1) Including prepayments to suppliers

2) Including consumables / auxiliary material

Accounting principles inventories

The weighted average method is primarily used to determine cost for raw materials and merchandise. Semi-finished and finished goods are carried at the lower of cost of direct materials and labour and net realisable value. 

Inventory allowances are recognised on inventories for slow moving items and excess stock.

Cost of goods mainly include costs of goods and merchandise from the operating segments Products & Care and Logistics & IT. Price discounts, rebates or supplier discounts and other payments received from suppliers that are not payment for distinct goods or services provided by Galenica and thus on the purchase of goods are directly deducted from cost of goods.


14. Property, plant and equipment

14. Property, plant and equipment

Property, plant and equipment

in thousand CHF

Real estate

Assets under construction

Warehouse equipment

Furniture, fittings

Other property, plant and equipment

Total property, plant and equipment

Net carrying amount as at 31.12.2023

168,019

3,129

39,996

25,156

23,402

259,702

Addition

16,007

2,654

5,578

6,507

5,277

36,023

Disposal

–714

–63

–24

–235

–1,037

Reclassification

772

–1,375

392

212

Depreciation

–16,341

–6,096

–5,377

–9,580

–37,394

Addition to scope of consolidation

359

23

382

Net carrying amount as at 31.12.2024

167,743

4,408

39,807

26,620

19,098

257,676

Addition

11,430

5,792

5,513

5,877

3,156

31,767

Disposal

–281

–281

Reclassification

1,626

–2,449

115

114

529

–65

Depreciation

–15,351

–6,476

–5,455

–8,104

–35,385

Addition to scope of consolidation

386

240

175

19,907

20,708

Net carrying amount as at 31.12.2025

165,834

7,990

38,959

27,331

34,305

274,420

 

 

 

 

 

 

 

Overview as at 31.12.2024

 

 

 

 

 

 

Cost

357,799

4,408

122,524

125,266

67,806

677,802

Accumulated depreciation and impairment

–190,056

–82,716

–98,645

–48,708

–420,126

Net carrying amount as at 31.12.2024

167,743

4,408

39,807

26,620

19,098

257,676

 

 

 

 

 

 

 

Overview as at 31.12.2025

 

 

 

 

 

 

Cost

368,558

7,990

127,721

128,642

75,152

708,063

Accumulated depreciation and impairment

–202,724

–88,762

–101,310

–40,847

–433,643

Net carrying amount as at 31.12.2025

165,834

7,990

38,959

27,331

34,305

274,420

Accounting principles property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and impairment. Depreciation is charged on a straight-line basis over the assets' useful lives as follows:

 

Years

Land

unlimited

Buildings

10 – 50

Warehouse equipment

5 – 15

Manufacturing equipment

5 – 15

Furniture, fittings

5 – 10

IT equipment

3 – 10

Vehicles

3 – 10

Other property, plant and equipment consists of manufacturing equipment, IT equipment and vehicles.

When items of property, plant and equipment are sold or derecognised, gains are recognised in other income and losses in other operating costs.


15. Leases

15. Leases

Right-of-use assets

in thousand CHF

Real estate

Other right of-use assets

Total right-of-use assets

Net carrying amount as at 31.12.2023

229,366

217

229,583

Addition

19,055

88

19,143

Reassessment of existing lease contracts

28,905

–7

28,898

Depreciation

–52,718

–117

–52,834

Impairment

–98

–98

Reversal of impairment

49

49

Addition to scope of consolidation

4,376

4,376

Translation differences

1

1

Net carrying amount as at 31.12.2024

228,936

182

229,118

Addition

4,791

368

5,159

Reassessment of existing lease contracts

40,159

–5

40,155

Depreciation

–53,823

–197

–54,020

Impairment

–206

–206

Addition to scope of consolidation

15,534

1,328

16,862

Translation differences

–1

–1

Net carrying amount as at 31.12.2025

235,392

1,674

237,066

Lease liabilities

in thousand CHF

2025

2024

Net carrying amount as at 1 January

235,887

236,041

Addition

5,159

19,143

Reassessment of existing lease contracts

40,155

28,902

Interest expense on lease liabilities

2,860

3,116

Repayment of lease liabilities (including interest)

–56,924

–55,691

Addition to scope of consolidation

16,862

4,376

Translation differences

–1

1

Net carrying amount as at 31 December

243,998

235,887

– of which current lease liabilities

55,311

52,693

– of which non-current lease liabilities

188,687

183,195

Leases recognised in profit or loss

in thousand CHF

2025

2024

Rental income from operating leases (included in other income)

467

551

Short-term lease expense (included in other operating costs)

–1,326

–1,494

Low-value lease expense (included in other operating costs)

–1,340

–731

Variable lease expense (included in other operating costs)

–4,593

–4,339

Depreciation of right-of-use assets

–54,020

–52,834

Impairment of right-of-use assets

–206

–98

Reversal of impairment of right-of-use assets

49

Interest expense on lease liabilities

–2,860

–3,116

The total cash outflow for leases including short-term leases, leases of low-value-assets and variable lease expenses was CHF 64.2 million (previous year: CHF 62.3 million).

Maturity profile of undiscounted lease liabilities

in thousand CHF

2025

2024

Up to 3 months

14,615

13,922

In 3 to 12 months

43,139

41,317

In 2 years

52,691

49,867

In 3 years

44,335

40,933

In 4 to 5 years

57,175

56,091

In 6 to 10 years

35,847

38,745

In more than 10 years

4,833

4,520

Total future cash flows from undiscounted lease liabilities

252,636

245,395

Possible future cash outflows related to extension options in an amount of CHF 206.0 million (previous year: CHF 213.8 million) are not included in lease liabilities because it is not reasonably certain that these options will be exercised.

The cash outflows for variable lease expenses in 2026 is expected to be similar to the amount recognised in 2025.

Galenica has entered into various lease contracts that have not yet commenced as at 31 December 2025. The future lease payments for these non-cancellable lease contracts amount to CHF 36.5 million (previous year: CHF 40.1 million).

Accounting principles leases

Galenica has lease contracts for furniture, vehicles and a large number of contracts for real estate, mainly store locations, which include fixed rental payments and variable sales-based components. The significant majority of these lease contracts concerns locations of the pharmacies in the operating segment Products & Care.

Galenica determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain at inception of the contract to be exercised. Galenica has the option, under some of its leases, to lease the assets for additional terms of several (three, five or more) years. Galenica applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. In doing so, Galenica considers all relevant factors including economic incentives. Galenica reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise, or not to exercise, the option to renew (e.g. a change in business strategy of the underlying asset).

Galenica uses the recognition exemptions for lease contracts that have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets).


16. Intangible assets

16. Intangible assets

Intangible assets 

in thousand CHF

Intangible assets with finite useful lives 1)

Trademarks with indefinite useful lives

Software

Goodwill

Total intangible assets

Net carrying amount as at 31.12.2023

8,332

91,660

107,204

871,307

1,078,503

Addition

392

36,350

36,742

Disposal

–74

–74

Amortisation

–2,677

–16,824

–19,501

Addition to scope of consolidation

20,168

20,168

Translation differences

6

6

Net carrying amount as at 31.12.2024

6,054

91,660

126,656

891,475

1,115,844

Addition

905

28,472

29,377

Disposal

–21

–21

Reclassification

65

65

Amortisation

–5,272

–21,520

–26,792

Addition to scope of consolidation

140,478

5,177

149,744

295,398

Translation differences

–2

–2

Net carrying amount as at 31.12.2025

142,162

91,660

138,828

1,041,218

1,413,869

 

 

 

 

 

 

Overview as at 31.12.2024

 

 

 

 

 

Cost

23,260

91,660

202,484

891,475

1,208,879

Accumulated amortisation and impairment

–17,206

–75,829

–93,035

Net carrying amount as at 31.12.2024

6,054

91,660

126,656

891,475

1,115,844

 

 

 

 

 

 

Overview as at 31.12.2025

 

 

 

 

 

Cost

164,638

91,660

196,274

1,041,218

1,493,791

Accumulated amortisation and impairment

–22,476

–57,446

–79,922

Net carrying amount as at 31.12.2025

142,162

91,660

138,828

1,041,218

1,413,869

1) Including trademarks, patents, licences and customer relationships

Trademarks with indefinite useful lives

This position includes trademarks that are well known nationally and internationally and actively advertised. These acquired trademarks are regarded as having indefinite useful lives for the following reasons: they were created many years ago, they do not expire, and the products sold under the trademarks have a history of strong revenue and cash flow performance. Galenica intends and has the ability to support the trademarks to maintain their values for the foreseeable future.

For impairment testing purposes the trademarks have been allocated to the cash-generating units Verfora, Padma and Spagyros in the operating segment Products & Care. The recoverable amount is determined on the basis of future discounted cash flows. Cash flows beyond the three-year planning period are based on the growth rates and discount rates before tax set out below, as approved in medium-term planning by management:

Trademarks with indefinite useful lives

in thousand CHF

2025

2024

Carrying amount

91,660

91,660

Growth rate

0.7%

1.2%

Pre-tax discount rate

6.8%

7.2%

According to the results of impairment testing for 2025 and 2024 using value in use calculations, no impairment was necessary. Galenica performed a sensitivity analysis taking into account reasonable changes in the assumptions used to calculate the discounted cash flows, such as higher discount rates, lower EBIT margins or lower perpetual growth rates. The sensitivity analysis for 2025 and 2024 did not reveal that a reasonable possible change in assumption would lead to an impairment.

Goodwill

Goodwill

 

 

2025

 

2024

in thousand CHF

Carrying amount

Growth rate

Pre-tax discount rate

Carrying amount

Growth rate

Pre-tax discount rate

Products & Care

955,671

0.7%

6.8%

805,928

1.2%

7.2%

Logistics & IT

85,547

0.7%

6.8%

85,547

1.2%

7.2%

Total

1,041,218

 

 

891,475

 

 

According to the results of impairment testing for 2025 and 2024 using value in use calculations, no impairment was necessary. Galenica performed a sensitivity analysis taking into account reasonable changes in the assumptions used to calculate the discounted cash flows, such as higher discount rates, lower EBIT margins or lower perpetual growth rates. The sensitivity analysis for 2025 and 2024 did not reveal that a reasonable possible change in assumption would lead to an impairment.

Accounting principles intangible assets

Intangible assets include acquired trademarks, patents, licences, customer relationships, purchased or internally developed software and other assets without physical substance. These items are measured at cost less accumulated amortisation and impairment.

Expenditure on internally developed software is capitalised when the capitalisation criteria are met and future economic benefits from use or sale of the software are expected. Software that is not yet available for use is tested for impairment annually or more frequently if there are indications of impairment.

Amortisation is charged on a straight-line basis over the estimated economic or legal useful life, whichever is shorter as follows:

 

Years

Trademarks, patents, licences, customer relationships

5 – 20

Software

2 – 15

The amortisation period and the amortisation method are reviewed at least at each financial year-end.

With the exception of trademarks in the business area Products & Brands, all intangible assets are assessed as having a finite useful life. Intangible assets with indefinite useful lives are not amortised but tested for impairment annually in the fourth quarter of the year, or more frequently if there are indications of impairment.

Goodwill is allocated to the cash-generating unit (CGU) or group of CGUs that are expected to benefit from a business combination. Management monitors goodwill at operating segment level.

Goodwill is tested for impairment annually in the fourth quarter of the year, or more frequently if there are indications of impairment. The impairment test is based on the discounted cash flow method. The WACC is used to determine the applicable pre-tax discount rate. The recoverable amount (higher of fair value less costs of disposal and value in use) of each CGU is determined on the basis of the medium-term plans for the next three years approved by management. Cash flows beyond the three-year planning period are extrapolated using a perpetual growth rate. If the recoverable amount is lower than the carrying amount, the carrying amount is reduced to the recoverable amount by recording an impairment charge.


17. Investments in associates and joint ventures

17. Investments in associates and joint ventures

Investments in associates

Investments in associates

in thousand CHF

2025

2024

Net carrying amount as at 1 January

112,729

112,969

Share of profit from associates

-1,997 1)

257

Remeasurement of net defined benefit plans from associates

791

405

Investments

2,081

2,071

Dividends received

–4,933

–2,973

Net carrying amount as at 31 December

108,669

112,729

1) Including a revaluation loss of CHF -2.4 million

Mediservice is the only significant associate of Galenica. Mediservice as specialty pharmacy offers a range of services for chronic and rare disease. Furthermore, Mediservice operates the pure online pharmacy Redcare-apotheke.ch and is registered in Zuchwil, Switzerland. Galenica owns 49% of the share capital and voting rights, Redcare Pharmacy N.V., Netherlands owns 51% of the share capital and voting rights.

Condensed financial information of Mediservice

in thousand CHF

2025

2024

Current assets

74,541

80,601

Non-current assets

200,905

200,737

Current liabilities

64,229

59,752

Non-current liabilities

4,688

7,269

Equity before appropriation of earnings

206,529

214,317

Operating income

528,651

471,376

EBIT

511

1,655

Net profit

598

1,632

Remeasurement of net defined benefit plans recognised in other comprehensive income

1,614

826

The net carrying amount of the investment in Mediservice is CHF 101.2 million as at 31 December 2025 (previous year: CHF 105.0 million). Unrealised profits on inventory are not considered in these amounts.

Investments in joint ventures

Investments in joint ventures

in thousand CHF

2025

2024

Net carrying amount as at 1 January

32,358

31,016

Share of profit from joint ventures

7,664

5,951

Remeasurement of net defined benefit plans from joint ventures

5

95

Disposal

–73

Dividends received

–735

–4,704

Net carrying amount as at 31 December

39,219

32,358

Coop Vitality is the only significant joint venture of Galenica. Coop Vitality is registered in Bern, Switzerland. Galenica owns 49% of the share capital and voting rights, Coop Cooperative owns 51% of the share capital and voting rights.

In case Coop Vitality was overindebted, Galenica has an unlimited obligation, in proportion to its equity interest, to ­restructure the company. At the reporting date, this joint venture is not overindebted.

Condensed financial information of Coop Vitality

in thousand CHF

2025

2024

Current assets

48,019

46,860

Non-current assets

109,102

104,643

– of which right-of-use assets

40,157

38,314

Current liabilities

40,871

51,101

– of which current lease liabilities

9,917

9,727

Non-current liabilities

36,961

35,487

– of which non-current lease liabilities

30,747

29,351

Equity before appropriation of earnings

79,290

64,915

Operating income

310,766

293,095

EBIT

19,979

16,324

Net profit

15,864

12,644

Remeasurement of net defined benefit plans recognised in other comprehensive income

11

194

The net carrying amount of the investment in Coop Vitality is CHF 38.9 million as at 31 December 2025 (previous year: CHF 31.8 million). Unrealised profits on inventory are not considered in these amounts.


18. Financial assets

18. Financial assets

Financial assets

in thousand CHF

2025

2024

Loans

8,498

13,845

Rental deposits

5,515

5,248

Other financial assets

776

780

Loans and other financial assets

14,789

19,873

Equity instruments at fair value through profit or loss

2,116

2,515

Equity instruments at fair value through other comprehensive income

132,359

264,541

Financial assets

149,264

286,929

Accounting principles financial assets

Non-current financial assets comprise loans, time deposits with a term to maturity of more than twelve months, rental deposits, equity instruments and derivative financial instruments with a positive fair value and a residual term to maturity of more than twelve months. Other than the derivatives measured at fair value through profit or loss, the financial assets are held to collect contractual cash flows comprising solely principal and interest payments and are therefore measured at amortised cost subsequent to initial recognition. Any credit losses on financial assets recognised represent 12 month expected losses and are estimated based on the credit risk of the counterparty. Any impairment is recognised in financial expenses.


19. Financial liabilities

19. Financial liabilities

Financial liabilities

in thousand CHF

2025

2024

Loans

12,440

24,503

Liabilities to pension funds

15,087

14,365

Bonds

769,288

519,811

Contingent consideration liabilities from business combinations

4,150

30,907

Other financial liabilities

16,001

8,506

Financial liabilities

816,965

598,093

– of which current financial liabilities

215,422

58,385

– of which non-current financial liabilities

601,543

539,708

Bonds

in thousand CHF

ISIN

Nominal

Coupon

2025

2024

Straight Bond (15 June 2017 - 15 December 2026)

CH0367206700

180,000

1.00%

180,039

180,080

Straight Bond (8 May 2023 - 8 November 2029)

CH1255924453

240,000

2.35%

239,832

239,791

Straight Bond (30 April 2024 - 30 April 2031)

CH1331113634

100,000

1.65%

99,949

99,940

Straight Bond (9 December 2025 - 9 December 2032)

CH1494626398

250,000

1.08%

249,467

Bonds

 

770,000

 

769,288

519,811

Cash flow from financial liabilities and lease liabilities 2025

in thousand CHF

01.01.2025

Proceeds from financial liabilities

Repayment of financial liabilities

Addition to scope of consolidation

Other changes

31.12.2025

Bank loans

280,000

–321,750

41,750

Loans

24,503

1,129

–13,193

12,440

Liabilities to pension funds

14,365

823

–101

15,087

Private placement (notes)

50,000

–50,000

Bonds

519,811

249,463

14

769,288

Contingent consideration liabilities from business combinations

30,907

–26,757

4,150

Other financial liabilities

8,506

–35

35

7,495

16,001

Financial liabilities

598,093

581,415

–385,079

41,785

–19,248

816,965

Lease liabilities

235,887

–54,064

16,862

45,312

243,998

Financial liabilities and lease liabilities

833,980

581,415

–439,143

58,647

26,064

1,060,963

Cash flow from financial liabilities and lease liabilities 2024

in thousand CHF

01.01.2024

Proceeds from financial liabilities

Repayment of financial liabilities

Addition to scope of consolidation

Other changes

31.12.2024

Bank loans

30,000

160,000

–190,000

Loans

28,053

1,150

–4,810

110

24,503

Mortgages

1,229

–1,229

Liabilities to pension funds

10,708

3,560

97

14,365

Private placement (notes)

45,000

–45,000

Bonds

419,871

99,934

6

519,811

Contingent consideration liabilities from business combinations

41,507

–10,600

30,907

Other financial liabilities

7,431

1,075

8,506

Financial liabilities

538,799

309,645

–241,039

–9,312

598,093

Lease liabilities

236,041

–52,576

4,376

48,046

235,887

Financial liabilities and lease liabilities

774,841

309,645

–293,615

4,376

38,733

833,980


20. Trade and other payables

20. Trade and other payables

Trade and other payables

in thousand CHF

2025

2024

Trade payables

462,066

418,274

Contract liabilities

10,968

10,381

Other payables

26,632

26,693

Trade and other payables

499,667

455,348

Contract liabilities are generally recognised in revenue within 12 months.


21. Provisions

21. Provisions

Provisions

in thousand CHF

2025

2024

1 January

5,256

5,558

Addition

1,557

654

Use

–380

–760

Reversal

–3,020

–372

Addition to scope of consolidation

3,837

176

31 December

7,250

5,256

– of which current provisions

6,782

4,983

– of which non-current provisions

468

273

Provisions are recognised for the estimated cost on damage, contractual liabilities, customer complaints, litigation risk and ongoing legal proceedings.


22. Contingent liabilities and commitments

22. Contingent liabilities and commitments

Galenica is subject to a variety of risks. These risks include, but are not limited to, risks regarding product liability, patent law, tax law, competition laws and anti-trust laws. A number of Group companies are currently involved in administrative proceedings, legal disputes and investigations relating to their business activities. The results of ongoing proceedings ­cannot be predicted with certainty. Management has established appropriate provisions for any expenses likely to be incurred. These projections, however, are also subject to uncertainty. Galenica does not expect the results of these proceedings to have a significant impact on the financial statements.

Galenica entered into various obligations regarding the purchase of services, goods and equipment as part of its ordinary business operations.

Galenica signed purchase agreements to acquire property, plant and equipment and intangible assets totalling CHF 10.3 million (previous year: CHF 15.9 million). The payments under these purchase commitments become due in 2026.

Furthermore, there are guarantees of CHF 11.8 million (previous year: CHF 12.4 million) and subordinated loans of CHF 1.2 million (previous year: CHF 1.1 million) to third parties.

There are no unusual pending transactions or risks to be disclosed.


23. Employee benefit plans

23. Employee benefit plans

The vast majority of the Galenica employees work in Switzerland and participate in the Galenica Pension Fund, which is financed by the employers and the employees. This plan is legally separate from Galenica and qualifies as a defined benefit plan. The pension plan covers the risks of the economic consequences of old age, disability and death in accordance with the Swiss Federal Occupational Retirement, Survivors and Disability Pension Plans Act (BVG/LPP). The pension plan is structured in the legal form of a foundation. All actuarial risks are borne by the foundation and regularly assessed by the Board of Trustees based on an annual actuarial appraisal prepared in accordance with BVG/LPP. The company's liabilities are limited to contributions that are based on a percentage of the insured salary under the Swiss law. Only in cases of a funded status that is significantly below a funded status of 100% as per the BVG/LPP law can Galenica be required to pay additional contri­butions. The calculations made in these appraisals do not apply the projected unit credit method required by IFRS Accounting Standards. If the calculations made in accordance with the provisions of BVG/LPP reveal a funded status of less than 100%, suitable restructuring measures need to be introduced. The Board of Trustees consists of employee and employer representatives.

The defined benefit plan is funded. Plan assets are managed separately from Galenica's assets by the independent pension fund.

The most recent actuarial valuation was prepared as at 31 December 2025. The pension fund assets are invested in accordance with local investment guidelines. Galenica pays its contributions to the pension fund in accordance with the regulations defined by the fund.

The final funded status pursuant to BVG/LPP is not available until the first quarter of the subsequent year. The projected funded status as at 31 December 2025 for Galenica Pension Fund is 118.8% (unaudited) and as at 31 December 2024 117.6% (final).

Defined benefit plans and long-service awards

 

 

 

2025

 

 

2024

in thousand CHF

Defined benefit plans

Long-service awards 1)

Total

Defined benefit plans

Long-service awards 1)

Total

Plan assets measured at fair value

1,346,671

1,346,671

1,228,826

1,228,826

Present value of defined benefit obligation

–1,238,613

–13,843

–1,252,456

–1,188,654

–13,680

–1,202,334

Surplus / (deficit)

108,058

–13,843

94,215

40,172

–13,680

26,492

Effect of asset ceiling

–111,559

–111,559

–44,022

–44,022

Net carrying amount recognised in employee benefit assets / liabilities

–3,501

–13,843

–17,344

–3,850

–13,680

–17,530

of which recognised in liabilities

–3,501

–13,843

–17,344

–3,850

–13,680

–17,530

1) Long-service awards relate to provisions for jubilee payments

Change in present value of defined benefit obligation

 

 

 

2025

 

 

2024

in thousand CHF

Defined benefit plans

Long-service awards

Total

Defined benefit plans

Long-service awards

Total

1 January

–1,188,654

–13,680

–1,202,334

–1,079,958

–14,290

–1,094,248

Current service cost

–34,108

–1,503

–35,611

–32,761

–1,756

–34,517

Past service cost

–95

–95

Interest on defined benefit obligation

–11,040

–125

–11,165

–14,752

–184

–14,937

Actuarial gain/(loss)

32,782

424

33,206

–55,377

1,023

–54,354

Employee contributions

–22,941

–22,941

–22,027

–22,027

Benefits/awards paid

24,277

1,425

25,702

16,315

1,527

17,842

Change in scope of consolidation

–38,929

–385

–39,314

31 December

–1,238,613

–13,843

–1,252,456

–1,188,654

–13,680

–1,202,334

Change in fair value of plan assets

in thousand CHF

2025

2024

1 January

1,228,826

1,101,802

Interest on plan assets

11,691

15,423

Remeasurement gain/(loss)

38,615

73,340

Employee contributions

22,941

22,027

Employer contributions

35,032

33,586

Net benefits paid

–24,277

–16,315

Administration cost

–997

–1,036

Change in scope of consolidation

34,840

31 December

1,346,671

1,228,826

Net defined benefit cost

in thousand CHF

2025

2024

Current service cost

34,108

32,761

Past service cost

95

Net interest on net defined benefit liability

–233

–582

Administration cost

997

1,036

Net defined benefit cost

34,872

33,310

Remeasurement of net defined benefit assets / liabilities

in thousand CHF

2025

2024

Actuarial gain/(loss) due to:

 

 

– Changes in demographic assumptions

24,399

– Changes in financial assumptions

48,275

–54,261

– Experience adjustments

–15,493

–25,515

Remeasurement of plan assets

38,615

73,340

Effect in the change of asset ceiling

–67,119

–37,587

Remeasurement of net defined benefit liabilities recognised in other comprehensive income

4,278

–19,624

Change in assumption and in estimate

The experience adjustments of minus CHF 15.5 million (previous year: minus CHF 25.5 million) were the result of various elements not expected in the prior year mainly the additional interest rate in 2025 on the defined benefit plans, additional onetime pension payments and the overall development of the population and other items as calculated by the external actuary.

The increase of the discount rate from 0.95% to 1.30% (previous year: decrease from 1.40% to 0.95%) resulted in a decrease of the defined benefit obligation of CHF 48.3 million (previous year: increase of CHF 54.3 million).

In the previous year, Galenica conducted a review of actuarial valuation parameters, including employee turnover rates. Based on observed historical patterns, turnover rates were adjusted to approximately 120% of the BVG 2020 tables for the retail business and 110% for the non-retail business. These adjustments resulted in a decrease of the defined benefit obligation by CHF 24.4 million, which was recognised in other comprehensive income in 2024.

Asset ceiling

in thousand CHF

2025

2024

1 January

–44,022

–6,346

Interest income

–418

–89

Change in the asset ceiling (recognised in other comprehensive income)

–67,119

–37,587

31 December

–111,559

–44,022

Investment structure of plan assets

in thousand CHF

 

2025

 

2024

Cash and cash equivalents

4,334

0.3%

9,514

0.8%

Debt instruments

273,339

20.3%

269,158

21.9%

Equity instruments

557,947

41.4%

524,226

42.7%

Real estate

323,269

24.0%

276,572

22.5%

Other investments

187,782

13.9%

149,356

12.2%

Fair value of plan assets

1,346,671

100.0%

1,228,826

100.0%

Current return on plan assets

 

4.0%

 

8.1%

The Board of Trustees is responsible for investing the plan assets. It defines the investment strategy and determines the long-term target asset structure (investment policy), taking into account the legal requirements, objectives set, the benefit obligations and the foundations' risk capacity. The Board of Trustees delegates implementation of the investment policy in accordance with the investment strategy to an investment committee, which also comprises trustees from the Board of Trustees and a general manager. Plan assets are managed by external asset managers in line with the investment strategy.

Cash and cash equivalents are deposited with financial institutions with a credit rating of A or above.

Debt instruments (e.g. bonds) have a credit rating of at least BBB and quoted prices in active markets (level 1 of the fair value hierarchy). They can be investments in funds and direct investments.

Equity instruments are investments in equity funds. These generally have quoted prices in active markets (level 1 of the fair value hierarchy).

Real estate relates to both residential property and offices. These can be investments in quoted real estate funds (level 1 of the fair value hierarchy) or direct investments (level 3 of the fair value hierarchy). If real estate is held directly, it is valued by an independent expert.

Other investments consist of hedge funds, insurance linked securities (ILS), infrastructures, senior loans, private equity and receivables. There are receivables from Group companies amounted to CHF 13.6 million (previous year: CHF 12.9 million). Investments in hedge funds are classified as alternative investments. They are primarily used for risk management purposes. In most cases, quoted prices in an active market are not available for hedge funds investments (level 2 or level 3 of the fair value hierarchy).

The use of derivative financial instruments is only permitted if sufficient liquidity or underlying investments are available. Leverage and short selling are not permitted.

The pension funds manage the assets of 6,269 active members (previous year: 5,900) and 1,071 pensioners (previous year: 1,036).

Galenica does not use any pension fund assets.

Basis for measurement

 

2025

2024

Discount rate

1.30%

0.95%

Salary development

1.90%

2.10%

Pension development

0.00%

0.00%

Mortality (mortality tables)

BVG 2020 GT (CMI), 1.5%

BVG 2020 GT (CMI), 1.5%

Turnover

BVG 2020 (110% –120%)

BVG 2020 (110% –120%)

Sensitivity analysis

The discount rate, future salary development and mortality were identified as key actuarial assumptions. Changes in these assumptions would affect the defined benefit obligation (DBO) as follows:

Sensitivity analysis

 

 

2025

 

2024

in thousand CHF

Variations in assumptions

Impact on DBO

Variations in assumptions

Impact on DBO

Discount rate

+0.25%

–35,881

+0.25%

–36,871

 

-0.25%

38,397

-0.25%

39,257

Salary development

+0.25%

2,477

+0.25%

3,581

 

-0.25%

–2,477

-0.25%

–2,400

Mortality

+1 year

29,417

+1 year

30,837

 

-1 year

–30,617

-1 year

–30,837

The sensitivity analysis assumes potential changes in the above parameters as at year end. Every change in a key actuarial assumption is analysed separately. Interdependencies were not taken into account.

The pension obligations have an average duration of 14.2 years (previous year: 14.7 years).

Cash outflows for pension payments and other obligations can be budgeted reliably. The benefit plans collect regular contribution payments. Furthermore, the investment strategies safeguard liquidity at all times.

The employer contributions to the pension fund are estimated at CHF 36.7 million for 2026.


24. Shareholders' equity

24. Shareholders' equity

24.1 Share capital and number of shares

Galenica has fully paid-up share capital of CHF 5,000,000, divided into 50,000,000 publicly listed shares with a par value of CHF 0.10 each, as at the reporting date. All shares have the same capital rights with the exception of the treasury shares which do not generate any dividends. Voting rights and restrictions on voting rights are described in detail in Galenica's Annual Report 2025 in the chapter Corporate Governance (unaudited).

Number of shares

 

Total shares Galenica Ltd.

Treasury shares

Outstanding shares

Balance as at 31.12.2023

50,000,000

–167,820

49,832,180

Transactions with treasury shares

–5,159

–5,159

Balance as at 31.12.2024

50,000,000

–172,979

49,827,021

Transactions with treasury shares

–2,637

–2,637

Balance as at 31.12.2025

50,000,000

–175,616

49,824,384

The treasury shares are reserved for share-based payments to employees.

24.2 Changes in consolidated shareholder's equity

On 10 April 2025, the Annual General Meeting approved a dividend payment of CHF 114.7 million for the financial year 2024 (previous year: CHF 109.7 million), corresponding to CHF 2.30 per registered share (previous year: CHF 2.20). For this ­purpose, CHF 1.15 was taken from the reserves from capital contributions (previous year: CHF 1.10) and CHF 1.15 from retained earnings (previous year: CHF 1.10) of Galenica Ltd. The dividend was paid out to the shareholders on 16 April 2025.

In the reporting period, 161,623 treasury shares (previous year: 131,964 treasury shares) were bought at an average price of CHF 86.67 (previous year: CHF 73.53) and 158,986 treasury shares (previous year: 126,805 treasury shares) were issued as share-based payments.

The expense for share-based payment transactions, allocated over the vesting period, has been recognised in personnel costs and accrued in consolidated shareholders' equity.

The remaining shareholders of acquisitions completed in 2022 and 2025 hold put options to sell their shares to Galenica, which gives rise to a financial liability. Changes in the carrying amount of this financial liability reduced consolidated shareholders’ equity by CHF 4.8 million (previous year: CHF 1.2 million). In the previous year the acquisition of non-controlling interests reduced consolidated shareholders' equity by CHF 0.5 million.

The Board of Directors will submit a proposal to the Annual General Meeting on 21 April 2026 to pay a dividend of CHF 2.50 per share entitled to receive dividend for the financial year 2025. For this purpose, CHF 1.25 is to be taken from the reserves from capital contributions and CHF 1.25 from the retained earnings. However, no dividend will be paid on treasury shares. Based on the number of treasury shares as at 31 December 2025, the total dividend would amount to CHF 124.6 million.


25. Financial instruments

25. Financial instruments

25.1 Categories of financial instruments

Carrying amounts of financial instruments 2025

in thousand CHF

Financial assets at amortised costs

Financial assets at fair value through OCI

Financial liabilities at fair value through profit or loss

Financial liabilities at amortised costs

Total

Cash and cash equivalents

115,507

115,507

Trade and other receivables

526,776

526,776

Financial assets

16,905 1)

132,359

149,264

Current financial liabilities

4,150

211,272

215,422

Current lease liabilities

55,311

55,311

Trade and other payables

488,698

488,698

Non-current financial liabilities

601,543 2)

601,543

Non-current lease liabilities

188,687

188,687

Total

659,188

132,359

4,150

1,545,511

 

1) Of which CHF 2.1 million are in connection to equity instruments which are designated as financial asset at fair value through profit or loss

2) Of which CHF 10.3 million are in connection to put options for non-controlling interests. Changes in the liability amount are recognised in equity

Carrying amounts of financial instruments 2024

in thousand CHF

Financial assets at amortised costs

Financial assets at fair value through OCI

Financial liabilities at fair value through profit or loss

Financial liabilities at amortised costs

Total

Cash and cash equivalents

129,682

129,682

Trade and other receivables

499,999

499,999

Financial assets

22,388 1)

264,541

286,929

Current financial liabilities

18,500

39,885

58,385

Current lease liabilities

52,693

52,693

Trade and other payables

444,967

444,967

Non-current financial liabilities

12,407

527,300 2)

539,708

Non-current lease liabilities

183,195

183,195

Total

652,069

264,541

30,907

1,248,039

 

1) Of which CHF 2.5 million are in connection to equity instruments which are designated as financial asset at fair value through profit or loss

2) Of which CHF 5.5 million are in connection to put options for non-controlling interests. Changes in the liability amount are recognised in equity

Net gain/(loss) on financial instruments 2025

in thousand CHF

Financial assets at amortised costs

Financial assets at fair value through OCI

Financial liabilities at fair value through profit or loss

Financial liabilities at amortised costs

Total

Change in fair value

4,257

4,257

Net gain/(loss) on foreign exchange

–760

866

105

Other financial result

143

–52

91

Interest income

863

863

Interest expense

–10,596

–10,596

Interest expense on lease liabilities

–2,860

–2,860

Interest income on impaired trade receivables

155

155

Expected credit losses

–2,202

–2,202

Impairment on financial assets

–2,131

–2,131

Net gain/(loss) recognised in profit or loss

–3,932

4,257

–12,643

–12,318

Net gain/(loss) recognised in other comprehensive income 1)

–137,014

–137,014

1) Other comprehensive income includes changes in value of strategic investments (publicly and non-publicly traded equity instruments)

Net gain/(loss) on financial instruments 2024

in thousand CHF

Financial assets at amortised costs

Financial assets at fair value through OCI

Financial liabilities at fair value through profit or loss

Financial liabilities at amortised costs

Total

Change in fair value

10,600

10,600

Net gain/(loss) on foreign exchange

357

69

425

Other financial result

337

–42

295

Interest income

1,407

1,407

Interest expense

–9,538

–9,538

Interest expense on lease liabilities

–3,116

–3,116

Interest income on impaired trade receivables

212

212

Expected credit losses

337

337

Impairment on financial assets

–452

–452

Net gain/(loss) recognised in profit or loss

2,198

10,600

–12,628

170

Net gain/(loss) recognised in other comprehensive income 1)

2,408

2,408

1) Other comprehensive income includes changes in value of strategic investments (publicly and non-publicly traded equity instruments)

Accounting principles financial instruments (measurement and categories)

Galenica distinguishes between the following types of financial assets and financial ­liabilities:

Financial assets at amortised cost

This category includes trade and other receivables as well as loans and other financial assets such as rental deposits. These financial assets are subsequently measured at amortised cost using the effective interest rate method less expected credit losses. Galenica uses the simplified approach to determine its bad debt allowances for trade receivables using lifetime expected credit losses. Expenses for expected credit losses comprise the change in bad debt allowance and receivables directly ­written off.

Uncollectible loans and receivables are only derecognised if a certificate of loss has been issued.

Financial assets at fair value through other comprehensive income

Financial assets measured at fair value through other comprehensive income includes equity instruments which were irrevocably classified to be strategic in nature.

Financial liabilities at fair value through profit or loss

Financial liabilities classified as at fair value through profit or loss correspond to contingent consideration liabilities from business combinations.

Financial liabilities at amortised costs

Financial liabilities mainly comprise trade and other payables as well as financial liabilities and bonds and are ­measured at amortised cost using the effective interest rate method.

Put options granted to non-controlling interests to sell their shares to Galenica as part of a business combination represent a contractual obligation to purchase non-controlling interests and give rise to a financial liability if the option does not provide Galenica with a present ownership interest in the shares concerned. This liability is measured at the redemption amount as if the put option had been exercised at the balance sheet date. Galenica accounts for changes in the carrying amount of this financial liability as an equity transaction.

25.2 Fair value measurement

Fair value

 

 

2025

 

2024

in thousand CHF

Carrying amount

Fair value

Carrying amount

Fair value

Bond (level 1 of the fair value hierarchy)

769,288

785,520

519,811

541,600

With the exception of the bond the carrying amounts of all financial instruments approximate to their fair value or fair value disclosure is not required (lease liabilities).

As at 31 December 2025 Galenica holds equity instruments designated at fair value through other comprehensive income including a 10.4% (previous year: 10.3%) investment in the listed (level 1 of the fair value hierarchy) company Redcare Pharmacy N.V., Netherlands, with a fair value of CHF 131.0 million (previous year: CHF 261.4 million) and other investment in non-listed (level 3 of the fair value hierarchy) companies with a fair value of CHF 1.3 million (previous Year: CHF 3.2 million). These investments were irrevocably designated at fair value through other comprehensive income as Galenica considers these investments to be strategic in nature. Galenica recognised in the consolidated statement of comprehensive income a remeasurement loss of CHF 137.0 million (previous year: gain of CHF 2.4 million).

Fair value of financial instruments (level 3 of the fair value hierarchy)

Fair value of contingent consideration liabilities from business combinations (level 3 of the fair value hierarchy)

in thousand CHF

2025

2024

1 January

30,907

41,507

Change in fair value (recognised in profit or loss)

–4,257

–10,600

Payments (cash out)

–22,500

31 December

4,150

30,907

Fair value changes of contingent consideration liabilities from business combinations are recognised in profit or loss (financial result) for the relevant reporting period.

Fair value of equity instruments designated at fair value through other comprehensive income (level 3 of the fair value hierarchy)

in thousand CHF

2025

2024

1 January

3,181

3,928

Addition

935

Change in fair value (recognised in other comprehensive income)

–1,851

–1,682

31 December

1,330

3,181

Fair value and sensitivity analysis of contingent consideration liabilities from discontinued operations

Determining the contingent consideration liability in connection with the sale of Mediservice forecasted gross margin of the discontinued operation was identified as key assumptions. During the current financial year, a post-transaction review was conducted together with Mediservice’s strategic partners. As a result of this review, the original contractual arrangement relating to the contingent consideration was amended, in particular by extending its duration. Consequently, the contingent consideration liability related to discontinued operations was increased by CHF 2.0 million. Accordingly Galenica has recorded the amount of CHF 5.1 million (previous year CHF 3.0 million) as other liability in the consolidated statement of financial position. The future cash outflows range between zero and CHF 5.1 million.

Sensitivity analysis of contingent consideration liabilities from business combinations (level 3 of the fair value hierarchy)

An initial tranche of the contingent consideration liability arising from the business combination of Bahnhof Apotheke Langnau was settled during financial year 2025 with an amount of CHF 9.0 million. The remaining tranche is contingent upon the net sales achieved by the acquired business in the years 2026 and 2027. Galenica has recorded no amount as contingent consideration liability based on assumed probability-adjusted net sales. The possible future cash outflows range between zero and CHF 20.0 million. An increase of 20% in the expected net sales of the acquired business 2026 and 2027 would increase the contingent consideration liability by CHF 5.0 million. In return, a decrease of the expected net sales 2026 and 2027 would not have any impact on the assessment of the contingent consideration liability.

The contingent consideration liabilities arising from the business combinations of Lifestage Solutions and Padma were fully settled during the financial year 2025 for CHF 9.5 million and CHF 4.0 million respectively.

In addition, the contingent consideration liability related to the acquisition of Aquantic was settled on 30 January 2026 for CHF 4.2 million.


26. Financial risk management

26. Financial risk management

Galenica is exposed to various financial risks and liquidity requirements. Galenica's financing and financial risk management activities are centralised in Group Treasury, which manages financial exposures of Galenica on account of changes in interest rates, currency risks, credit risks and liquidity in a manner that is consistent with underlying business risks and in line with the treasury policy approved by the Board of Directors as well as internal guidelines on cash and liability management. In addition, capital management of Galenica is also mainly exercised and monitored at Group level.

It is Galenica's policy not to enter into any speculative financial arrangements and to ensure matching maturities. Together, the risk management and monitoring measures described below are designed to limit negative impact on the financial statements.

26.1 Liquidity risk

Liquidity risk management

The aim of liquidity risk management is to provide sufficient cash to meet Galenica's financial liabilities on time while maintaining the flexibility to take advantage of market opportunities and optimum investment conditions. Group Treasury is responsible for raising current and non-current loans as well as for decisions on investments. Apart from financing operations, Galenica's credit standing enables it to borrow funds at an advantageous rate. To ensure that Galenica can meet its payment obligations in good time, liquidity is monitored centrally. Group Treasury monitors the cash flows using rolling liquidity planning. This takes into account the maturities of the financial instruments as well as the cash flows from operating activities.

Maturity profile of financial liabilities 2025

in thousand CHF

Carrying amount

Total undiscounted cash flows

up to 3 months

3 to 12 months

1 to 5 years

Maturities more than 5 years

Trade and other payables

488,698

488,698

488,698

Current financial liabilities

35,383

35,383

28,702

6,681

Current lease liabilities

55,311

57,754

14,615

43,139

Non-current financial liabilities

12,295

12,465

12,465

Bonds

769,288

823,160

191,790

274,320

357,050

Non-current lease liabilities

188,687

194,881

154,201

40,680

Total

1,549,661

1,612,341

532,015

241,610

440,986

397,730

Maturity profile of financial liabilities 2024

in thousand CHF

Carrying amount

Total undiscounted cash flows

up to 3 months

3 to 12 months

1 to 5 years

Maturities more than 5 years

Trade and other payables

444,967

444,967

444,967

Current financial liabilities

58,385

58,388

56,068

2,320

Current lease liabilities

52,693

55,239

13,922

41,317

Non-current financial liabilities

19,896

20,154

20,154

Bonds

519,811

563,350

9,090

452,610

101,650

Non-current lease liabilities

183,195

190,156

146,891

43,265

Total

1,278,946

1,332,254

514,956

52,728

619,655

144,915

26.2 Credit risk

Credit risk management

Credit risk arise when a customer or a third party fails to meet its contractual obligations and causes Galenica a financial loss. Credit risk are minimised and monitored by restricting business relations to known, reliable partners.

Corporate policy ensures that credit checks are performed for customers who are supplied on credit. Trade receivables are subject to active risk management procedures. They are continually monitored and credit risk is reviewed in the process of reporting to management. Allowances for expected credit losses are made in accordance with uniform guidelines on the measurement of outstanding receivables.

In addition, credit risk arise in relation to financial assets, comprising cash and cash equivalents, securities and loans. The creditworthiness of the counterparties is regularly monitored and reported to management.

Financial assets subject to credit risk

in thousand CHF

2025

2024

Cash and cash equivalents (without cash on hand)

113,852

128,055

Trade and other receivables

526,776

499,999

Loans and other financial assets

14,789

19,873

Financial assets subject to credit risk

655,418

647,927

The financial assets subject to credit risk are primarily receivables.

Galenica applies internal risk management guidelines to identify concentrations of credit risk.

Galenica's financial assets are not exposed to a concentration of credit risk.

Trade receivables past due are analysed on an ongoing basis. These receivables are accounted for using individual bad debt allowances, adjusted for forward-looking factors specific to the debtors and the economic environment. Based on past experience, Galenica considers the creditworthiness of non-past due trade receivables to be good.


27. Capital management

27. Capital management

The capital of Galenica 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.

Net debt, shareholders' equity and gearing are shown in the table below.

Net debt, shareholder's equity and gearing

in thousand CHF

2025

2024

Current financial liabilities 1)

207,566

38,868

Current lease liabilities

55,311

52,693

Non-current financial liabilities 1)

589,248

519,811

Non-current lease liabilities

188,687

183,195

Cash and cash equivalents

–115,507

–129,682

Interest-bearing receivables

–6,500

–4,899

Net debt

918,806

659,986

 

 

 

Equity attributable to shareholders of Galenica Ltd.

1,481,901

1,548,694

Non-controlling interests

3,100

3,150

Shareholders' equity

1,485,002

1,551,844

 

 

 

Gearing

61.9%

42.5%

1) Excluding non-interest-bearing financial liabilities

Galenica has no covenants requiring a minimum level of equity, nor is Galenica subject to any externally regulated capital requirements as seen in the financial services sector.


28. Share-based payments

28. Share-based payments

Remuneration for members of the Board of Directors

The members of the Board of Directors receive fixed annual remuneration and can choose whether to receive it in full or in part (50%) in shares of Galenica Ltd. The amount settled in shares is paid out with a discount of 25%. The shares may not be traded for the first five years.

The fair value of the shares granted is equivalent to the amount to be paid out in shares plus the discount of 25%.

Share plan for members of senior management

According to the participation plan, members of senior management receive their performance-related bonus partly in cash and partly in shares of Galenica Ltd. The proportion of cash to shares is set out in the regulations and is based on the salary grade of the recipient. In addition, all members of senior management are obliged to hold a number of shares of Galenica. The amount to be settled in shares is paid out in the form of shares of Galenica Ltd. with a discount of 25%. The shares may not be traded for the first five years.

The fair value of the shares granted is equivalent to the amount to be paid out in shares plus the discount of 25%.

Long-term incentive plan (LTI)

Members of the Corporate Executive Committee of Galenica and certain members of senior management participate in a LTI plan for the allocation of performance share units. The number of these performance share units is based on the extent to which defined long-term performance targets such as the Galenica Economic Profit and the relative total shareholders return (TSR) are attained. TSR is measured as a percentile ranking against a peer group of relevant companies. A LTI plan always runs for a vesting period of three years. At the beginning of each financial year a new LTI plan with a new vesting period of three years is issued. At the start of the vesting period a defined number of performance share units are individually allocated. The number of performance share units allocated is dependent on the defined percentage of the annual salary incorporated into the LTI plan as well as the effective share price at the time of the allocation. At the end of the vesting period performance share units are paid out to eligible beneficiaries in the form of shares of Galenica Ltd.

16,846 performance share units (previous year: 16,780 performance share units) were granted to beneficiaries at a fair value of CHF 73.50 (previous year: CHF 69.05) at the beginning of the reporting period for the 2025 LTI plan.

Employee share plan

Employees of Galenica are entitled to buy a fixed number of shares of Galenica Ltd. at a preferential price. All employees who, at the time of the purchase offer, are not under notice and have an employment contract of unlimited duration are entitled to acquire shares.

The purchase price for the shares is calculated at the time of the purchase offer based on the average price for the previous month less a 30% discount. The price discount is borne by the employer. The shares may not be traded for the first three years.

In the reporting period, employees purchased 76,121 shares of Galenica Ltd. (previous year: 65,248 shares) at a price of CHF 61.75 (previous year: CHF 52.70). This includes a discount of CHF 26.43 (previous year: CHF 23.00) per share.

Share-based payment expense

in thousand CHF

2025

2024

Remuneration for members of the Board of Directors

1,760

1,387

Share plan for members of senior management

2,530

2,040

Long-term incentive plan (LTI)

1,100

1,036

Employee share plan

2,012

1,501

Total

7,402

5,963


29. Related party transactions

29. Related party transactions

Related parties include all joint ventures, associates, pension funds, members of the Board of Directors and members of the Corporate Executive Committee.

Related party transactions

The transactions shown in the table below under joint ventures largely concern transactions with Coop Vitality and those under associates mainly concern transactions with Mediservice.  All transactions are realised at market-based prices. The invoice payment for the sale of goods and services are due within 30 days and is payable in CHF.

Related party transactions

 

 

2025

 

2024

in thousand CHF

Joint ventures

Associates

Joint ventures

Associates

Sale of goods

191,672

27,596

181,119

25,581

Income from services

8,461

1,340

7,589

1,560

Other income

19

13

18

Purchase of goods

14

198

283

9

Other operating costs

29

31,156

25

9,519

Financial income

157

27

249

1

Financial expenses

108

30

71

187

 

 

 

 

 

Receivables and loans

12,997

20,544

22,069

14,977

Trade payables and loans

5,954

7,669

5,863

20,357

The financial liabilities to pension funds amounted to CHF 15.1 million (previous year: CHF 14.3 million).

Remuneration of the Board of Directors and the Corporate Executive Committee

Remuneration of the Board of Directors and the Corporate Executive Committee

in thousand CHF

2025

2024

Remuneration

4,507

4,226

Social security costs and pension expenses

1,170

1,102

Share-based payments

2,871

2,184

Total

8,548

7,512


30. Subsequent events

30. Subsequent events

The following transactions occurred between 31 December 2025 and 5 March 2026, the date on which the consolidated financial statements 2025 were released for publication.

Acquisition of pharmacies. Galenica acquired 100% of the interests in pharmacies at various locations in Switzerland.

The purchase consideration was CHF 12.1 million and the fair value of the provisional net assets resulting from these additions was estimated at CHF 1.9 million at the acquisition date. Since the transactions were concluded shortly before the consolidated financial statements were issued, no further information was available to disclose the additional information required by IFRS Accounting Standards.

Furthermore Galenica signed purchase agreements after 31 December 2025 to acquire 100% of the interests in pharmacies at various locations in Switzerland. The net assets of these acquisitions will be consolidated beginning from the date control is obtained, which will be after 5 March 2026. The total purchase considerations are estimated to CHF 4.7 million and are due with the closing of the transactions. Since the transactions have not yet been concluded, it is not possible to disclose the additional information required by IFRS Accounting Standards.

Acquisition of puravita AG. On 5 January 2026, Galenica acquired an additional 32.91% of the shares in puravita AG, which had previously been accounted for as an investment in an associate. As a result of this transaction, Galenica obtained control over puravita AG and will therefore include puravita AG in its consolidated financial statements. The purchase consideration was CHF 3.4 million and the fair value of the provisional net assets resulting from these additions was estimated at CHF 2.4 million at the acquisition date. Since the transaction was concluded shortly before the consolidated financial statements were issued, no further information was available to disclose the additional details required under IFRS Accounting Standards.

Discontinue of Bichsel’s production division. On 24 February 2026, and after a process of carefully evaluating several strategic alternatives, Galenica announced the intention to discontinue Bichsel’s production division by the end of 2026 at the latest for economic reasons and focus on its home care operations. As a result of the planned production closure, Galenica expects up to 170 jobs in production and sales at Bichsel to be affected by the end of 2026 at the latest. The consultation process has been initiated and is not finished on the date of release of the financial statement. In the event of the closure of Bichsel’s production division, the Galenica Group expects one-off special costs of CHF 35–40 million, which will arise in particular in the first half of 2026, of which CHF 17-19 million is attributable to value adjustments to inventories, manufacturing plants and other tangible assets.

There were no further significant events after the reporting date.


31. Group companies

31. Group companies

Group companies Products & Care

 

 

 

 

 

2025

2024

Group companies

Registered office

Method of consolidation

Currency

Share capital in thousand

Equity interest

Equity interest

Products & Care

 

 

 

 

 

 

Amavita Health Care Ltd.

CH-Niederbipp

full

CHF

100

100%

100%

Bahnhof Apotheke Langnau AG

CH-Langnau im Emmental

full

CHF

100

100%

100%

Bahnhof Apotheken Thun AG

CH-Thun

full

CHF

200

50%

50%

Bichsel AG 1)

CH-Interlaken

full

CHF

100

100%

100%

Coop Vitality AG

CH-Bern

at equity

CHF

5,000

49%

49%

Coop Vitality Health Care GmbH 1)

CH-Niederbipp

at equity

CHF

20

49%

49%

Coop Vitality Management AG

CH-Bern

at equity

CHF

100

49%

49%

curarex swiss AG 1) 2)

CH-Zuchwil

-

-

-

-

49%

Diagnostics Group LLC

CH-Goldach

full

CHF

1,000

100%

-

Dr. A.&L. Schmidgall GmbH & Co KG 1)

AT-Vienna

full

EUR

145

100%

100%

Emeda Ltd.

CH-Wangen-Brüttisellen

at equity

CHF

200

50%

50%

FARMACIA CHIASSESE FARMADOMO SA 1)

CH-Chiasso

at equity

CHF

100

33%

33%

Farmadomo Home Care Provider SA

CH-Bellinzona

at equity

CHF

100

33%

33%

GaleniCare Ltd.

CH-Bern

full

CHF

700

100%

100%

GaleniCare Management Ltd.

CH-Bern

full

CHF

500

100%

100%

G-Pharma AG

CH-Niederbipp

full

CHF

100

100%

100%

Grosse Apotheke Dr. G. Bichsel AG 1)

CH-Interlaken

full

CHF

200

100%

100%

Haemoclot AG 1)

CH-Zürich

full

CHF

100

100%

-

Hedoga AG

CH-Villars-sur-Glâne

full

CHF

100

100%

100%

Laboratorium Dr. G. Bichsel AG 1)

CH-Unterseen

full

CHF

200

100%

100%

Labor Team Holding Ltd. 1)

CH-Goldach

full

CHF

100

100%

-

labor team (liechtenstein) ag 1)

LI-Schaan

full

CHF

50

100%

-

labor team w ag 1)

CH-Goldach

full

CHF

6,210

100%

-

Lifestage Solutions Ltd.

CH-Otelfingen

full

CHF

152

100%

100%

Medifilm Ltd.

CH-Oensingen

full

CHF

1,300

100%

100%

medinform AG

CH-Zürich

full

CHF

100

50%

50%

MediService Ltd.

CH-Zuchwil

at equity

CHF

363

49%

49%

Modern-Path SA 1)

CH-Montreux

full

CHF

100

80%

-

MolecWise AG 1)

CH-Goldach

at equity

CHF

200

40%

-

PADMA Inc.

CH-Wetzikon

full

CHF

152

100%

100%

Padma Aktiengesellschaft für tibetische Heilmittel 1)

CH-Freienbach

full

CHF

100

100%

100%

PADMA EUROPE GmbH 1)

AT-Vienna

full

EUR

35

100%

100%

PADMA Deutschland GmbH 1)

DE-Gräfelfing

full

EUR

25

100%

100%

puravita AG

CH-Speicher

at equity

CHF

189

47.09%

34.34%

Schmidgall GmbH 1)

AT-Vienna

full

EUR

36

100%

100%

Spagyros Ltd.

CH-Worb

full

CHF

860

100%

100%

Sun Store Health Care Ltd.

CH-Niederbipp

full

CHF

100

100%

100%

SWISS PHARMA GmbH

DE-Rülzheim

full

EUR

51

100%

100%

Verfora Ltd.

CH-Villars-sur-Glâne

full

CHF

100

100%

100%

Winconcept Ltd.

CH-Bern

full

CHF

100

100%

100%

Zentral Apotheke Heerbrugg AG

CH-Au

full

CHF

100

100%

100%

1) Not directly held by Galenica Ltd.

2) The company was merged into MediService Ltd.

Group companies Logistics & IT and Group Services

 

 

 

 

 

2025

2024

Group companies

Registered office

Method of consolidation

Currency

Share capital in thousand

Equity interest

Equity interest

Logistics & IT

 

 

 

 

 

 

1L Logistics Ltd.

CH-Burgdorf

full

CHF

100

100%

100%

Alloga Ltd.

CH-Burgdorf

full

CHF

8,332

100%

100%

Aquantic AG

CH-Rheinfelden

full

CHF

100

100%

100%

Dauf SA 1)

CH-Lugano

full

CHF

100

94.54%

94.54%

Galexis Ltd.

CH-Niederbipp

full

CHF

25,000

100%

100%

HCI Solutions Ltd.

CH-Bern

full

CHF

100

100%

100%

Health Supply Ltd.

CH-Villmergen

at equity

CHF

100

40%

40%

Pharma-Info AG 2)

CH-Biel

-

-

-

-

49%

PharmaBlist Ltd. 1)

CH-Widnau

full

CHF

100

100%

100%

Pharmapool Ltd. 1)

CH-Widnau

full

CHF

962

100%

100%

Unione Farmaceutica Distribuzione SA

CH-Lugano

full

CHF

2,000

94.54%

94.54%

Group Services

 

 

 

 

 

 

Galenica Finanz Ltd.

CH-Bern

full

CHF

100

100%

100%

1) Not directly held by Galenica Ltd.

2) The company was sold in the second half of 2025


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