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.