Key figures
Net sales
in million CHF
Galenica Group
1,857.1
EBIT adjusted2)
in million CHF
Galenica Group
101.4
Number of employees
at 30 June 2021
Galenica Group
7,095
|
in million CHF |
1.1.–30.6.2021 |
1.1.–30.6.2020 |
Change |
|
Net sales |
1,857.1 |
1,690.4 |
9.9% |
|
Products & Care 1) |
918.9 |
809.0 |
13.6% |
|
Logistics & IT 1) |
1,377.9 |
1,283.4 |
7.4% |
|
|
|
|
|
|
EBIT |
99.0 |
82.3 |
20.3% |
|
EBIT adjusted 2) |
101.4 |
83.6 |
21.3% |
|
in % of net sales |
5.5% |
4.9% |
|
|
Products & Care 1)2) |
76.2 |
61.8 |
23.2% |
|
in % of net sales |
8.3% |
7.6% |
|
|
Logistics & IT 1)2) |
26.3 |
22.5 |
17.2% |
|
in % of net sales |
1.9% |
1.8% |
|
|
|
|
|
|
|
Net profit |
79.6 |
66.3 |
19.9% |
|
Net profit adjusted 2) |
82.5 |
68.4 |
20.6% |
|
|
|
|
|
|
Investment in property, plant and equipment and intangible assets |
24.7 |
26.7 |
–7.1% |
|
|
|
|
|
|
Employees at reporting date (FTE) |
5,388 |
5,379 |
0.2% |
|
|
|
|
|
|
|
|
|
|
|
in million CHF |
30.6.2021 |
30.6.2020 |
Change |
|
Equity ratio |
44.3% |
41.3% |
|
|
Equity ratio adjusted 2) |
49.2% |
50.0% |
|
|
Capital contribution reserves |
307.0 |
351.6 |
–12.7% |
|
Net debt adjusted 2) |
395.2 |
406.2 |
–2.7% |
Share information
|
in CHF |
30.6.2021 |
31.12.2020 |
|
Share price at reporting date |
65.30 |
59.00 |
|
Market capitalisation at reporting date in million CHF |
3,236.0 |
2,920.4 |
|
Shareholders' equity per share at reporting date |
22.37 |
21.19 |
|
Earnings per share 1.1.–30.6. |
1.60 |
1.34 |
|
Earnings per share adjusted 1.1.–30.6. 2) |
1.66 |
1.38 |
1) Reported for each segment not taking into account Group Services and Eliminations
2) For details to the adjusted key figures refer to chapter Alternative performance measures in this Half year report 2021
Key figures of the Galenica Group in the first half of 2021
Net sales
|
in thousand CHF |
1.1.–30.6.2021 |
1.1.–30.6.2020 |
Change |
|
Local Pharmacies |
616,926 |
563,009 |
9.6% |
|
Pharmacies at Home |
217,533 |
166,131 |
30.9% |
|
Retail (B2C) 1) |
834,286 |
729,043 |
14.4% |
|
Products & Brands |
59,583 |
54,619 |
9.1% |
|
Services for Professionals |
28,935 |
29,390 |
–1.5% |
|
Professionals (B2B) 1) |
88,518 |
84,009 |
5.4% |
|
Products & Care 1) |
918,926 |
809,023 |
13.6% |
|
Wholesale |
1,328,787 |
1,237,044 |
7.4% |
|
Logistics & IT Services |
50,542 |
48,414 |
4.4% |
|
Logistics & IT 1) |
1,377,914 |
1,283,416 |
7.4% |
|
Group Services |
10,485 |
8,852 |
18.5% |
|
Eliminations 2) |
–450,222 |
–410,871 |
9.6% |
|
Galenica Group |
1,857,103 |
1,690,420 |
9.9% |
1) Including eliminations of intercompany net sales
2) Eliminations of intersegmental net sales
Strong growth despite decline in sales in the first quarter of 2021
The Galenica Group generated consolidated net sales of CHF 1,857.1 million in the first half of 2021, corresponding to strong growth of 9.9% compared to the first half of 2020. After the absence of seasonal colds and people’s continued low mobility slowed down the course of business in the first quarter of 2021, it picked up considerably from April 2021 onward. This upward sales trend was driven in particular by one-off additional sales in connection with COVID-19, Verfora’s portfolio expansion, a pleasing increase in sales of the specialty pharmacy Mediservice (home care) and further market share gains in the physicians segment.
By way of comparison: the Swiss pharmaceutical market grew by 3.4% in the reporting period (IQVIA, Pharmaceutical Market Switzerland, first half of 2021). As in 2020, this growth was driven by increased sales of high-priced medications, whereas the sold volumes decreased by 7.5% (IQVIA, Pharmaceutical Market Switzerland, first half of 2021).
The adjusted1 operating result (EBIT), i.e. excluding the effects of the IFRS 16 (Leases) and IAS 19 (Employee Benefits) accounting standards, grew by 21.3% to CHF 101.4 million, in part due to the one-off additional sales in connection with COVID-19. Adjusted1 return on sales (ROS) was also increased year-on-year from 4.9% to 5.5%.
Net profit amounted to CHF 79.6 million (+19.9%; previous year: CHF 66.3 million). On a comparable basis, adjusted1 net profit totalled CHF 82.5 million (+20.6%).
Investments in the first half of 2021 amounted to CHF 24.7 million (first half of 2020: CHF 26.7 million). These were mainly attributable to the modernisation of the distribution centre in Lausanne-Ecublens and the introduction of the new ERP (Enterprise Resource Planning) system at Alloga and Galexis.
The Galenica Group’s balance sheet remained strong. Adjusted1 equity only declined minimally since the start of the year, even despite the fact that a dividend of CHF 89.2 million was distributed to shareholders in May 2021. Adjusted1 net debt, i.e. excluding lease liabilities, increased by CHF 41.5 million and amounted to CHF 395.2 million at the end of June 2021; this corresponds to 1.6× adjusted1 EBITDA (end-2020: 1.7×).
Operating cash flow developed extremely encouragingly and rose to CHF 138.6 million, which corresponds to an increase of 113.7% year over year. This growth stems from the strong operating result, in particular. Free cash flow after acquisitions was strong at CHF 55.9 million and already includes the acquisition of the range of therapeutic products of Dr. Wild & Co. Ltd.
1) Excluding the effects of IAS 19 and IFRS 16. See section Alternative performance measures.
Explanations regarding the new reporting structure in 2021
For the first time, Galenica reports its 2021 half year financial statements on the basis of the new organisational and management structure introduced as of 1 January 2021. The results for the first half of 2020 have been restated for the purposes of comparability with the prior-year period. The main reporting comprises the two segments “Products & Care” and “Logistics & IT”.
“Products & Care” segment
The “Products & Care” segment comprises the “Retail” business area with offerings for patients and end customers (B2C) and the “Professionals” business area with offerings for business customers and partners in the healthcare sector (B2B). The “Retail” business area comprises the two sectors “Local Pharmacies” (POS) and “Pharmacies at Home” (mail-order and home care), while the “Professionals” business area comprises the “Products & Brands” and “Services for Professionals” sectors. These activities focus on the development and marketing of healthcare services and products via the various sales channels: in-store at pharmacies (POS), shipments via mail-order pharmacies and e-shops or at home (home care), as well as business customers.
“Logistics & IT” segment
The “Logistics & IT” segment comprises the two sectors “Wholesale” and “Logistics & IT Services”. These provide services for all those involved in the healthcare sector – pharmacies, drugstores, doc-tors, 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.
