Development and marketing of healthcare services and products
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 industry (B2B). 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.
Net sales
+13.6%
Products & Care CHF 918.9 million
EBIT adjusted1
+23.2%
Products & Care CHF 76.2 million
Number of employees
5,165
Galenica Group 7,095
Net sales and operating result
The “Products & Care” segment generated net sales of CHF 918.9 million (+13.6%) in the first half of 2021. CHF 834.3 million (+14.4%, excluding Coop Vitality) thereof was accounted for by the “Retail” business area (B2C) and CHF 88.5 million (+5.4%) by the “Professionals” business area (B2B). The “Products & Care” segment therefore clearly outperformed the positive +3.4% trend of the overall market (IQVIA, Pharmaceutical Market Switzerland, first half of 2021).
The adjusted¹ operating result (EBIT), i.e. excluding the influence of the IFRS 16 (Leases) accounting standard, increased by 23.2% to CHF 76.2 million in the first half of 2021 and the adjusted¹ return on sales (ROS) rose from 7.6% to 8.3%. EBIT in the reporting period was negatively impacted by the continued reduction in sales of pharmacies at high-frequency locations as well as the absence of a seasonal flu outbreak in winter 2020/2021. These negative effects were more than offset by the one-off additional sales generated through offers to combat the COVID-19 pandemic as well as additional sales attributable to Verfora’s portfolio expansion.
Investments in the “Products & Care” segment amounted to CHF 10.6 million (first half of 2020: CHF 11.5 million). They were mainly used for pharmacy reconstructions.
1) Excluding the effects of IAS 19 and IFRS 16. See section Alternative performance measures.
