Organic growth of net sales

Organic growth of net sales shows the development of net sales for the operating segments Products & Care and Logistics & IT excluding the effects of acquisitions, new license agreements, openings and closures of pharmacies (effect of net expansion). It provides a “like-for-like” comparison with previous periods. In the business area Professionals (B2B), organic growth of net sales is calculated only including existing business activities with a full year period comparison. In the business area Retail (B2C), organic growth of net sales is calculated only including points of sales with a full year period comparison. In order to show the impact of mandatory price reductions of medications reimbursed by health insurers on net sales transparently, organic growth of net sales is also disclosed without the effect of price reductions.

Organic growth of net sales first half of 2022

in thousand CHF	Retail (B2C)	Professionals (B2B)	Products & Care 1)	Wholesale	Logistics & IT Services	Logistics & IT 1)
Net sales	880,442	109,341	986,815	1,379,426	63,794	1,434,631
Change to previous period 2)	5.5%	23.5%	7.4%	3.8%	26.2%	4.1%

Effect of net expansion	6,172 3)	13,467 4)	19,639	–	–	–
In % of net sales of previous period	0.7%	15.2%	2.1%	0.0%	0.0%	0.0%

Net sales excluding effect of net expansion	874,269	95,874	967,176	1,379,426	63,794	1,434,631
Organic growth of net sales 2)	4.8%	8.3%	5.3%	3.8%	26.2%	4.1%

Mandatory price reductions 5)	16,671			26,387
In % of net sales of previous period	2.0%			2.0%

Net sales excluding effect of net expansion and mandatory price reductions	890,940			1,405,813
Organic growth of net sales excluding price reductions 2)	6.8%			5.8%

1) Including eliminations of intercompany net sales

2) Growth rate includes minor change in segment reporting structure: adjusted growth rate on a comparable basis would be 1.2% lower for Retail (B2C), 1.1% lower for Products & Care and 0.7% higher for Wholesale and Logistics & IT

3) The effect of net expansion is calculated only including point of sales without a full year period comparison (acquisitions, openings and closure of pharmacies)

4) The effect of net expansion is calculated only including business activities without a full year period comparison (acquisitions and new license agreements)

5) Mandatory price reductions of medications reimbursed by health insurers of the specialities list (SL/LS) released by the Federal Office of Public Health (FOPH), calculated based on volumes of previous period

Organic growth of net sales first half of 2022 Products & Care

in thousand CHF	Local Pharmacies	Pharmacies at Home	Retail (B2C) 1)	Products & Brands	Services for Professionals	Professionals (B2B) 1)
Net sales	627,947	252,598	880,442	75,097	34,244	109,341
Change to previous period 2)	1.8%	16.1%	5.5%	26.0%	18.3%	23.5%

Effect of net expansion	6,172 3)	–	6,172 3)	7,721 4)	5,745 4)	13,467 4)
In % of net sales of previous period	1.0%	0.0%	0.7%	13.0%	19.9%	15.2%

Net sales excluding effect of net expansion	621,774	252,598	874,269	67,375	28,499	95,874
Organic growth of net sales 2)	0.8%	16.1%	4.8%	13.0%	–1.6%	8.3%

Mandatory price reductions 5)	7,262	9,409	16,671
In % of net sales of previous period	1.2%	4.3%	2.0%

Net sales excluding effect of net expansion and mandatory price reductions	629,036	262,007	890,940
Organic growth of net sales excluding price reductions 2)	2.0%	20.4%	6.8%

1) Including eliminations of intercompany net sales

2) Growth rate includes minor change in segment reporting structure: adjusted growth rate on a comparable basis would be 4.8% lower for Pharmacies at Home and 1.2% lower for Retail (B2C)

3) The effect of net expansion is calculated only including point of sales without a full year period comparison (acquisitions, openings and closure of pharmacies)

4) The effect of net expansion is calculated only including business activities without a full year period comparison (acquisitions and new license agreements)

Organic growth of net sales first half of 2021

in thousand CHF	Retail (B2C)	Professionals (B2B)	Products & Care 1)	Wholesale	Logistics & IT Services	Logistics & IT 1)
Net sales	834,286	88,518	918,926	1,328,787	50,542	1,377,914
Change to previous period	14.4%	5.4%	13.6%	7.4%	4.4%	7.4%

Effect of net expansion	17,077 2)	17,484 3)	34,561	–	–	–
In % of net sales of previous period	2.3%	20.8%	4.3%	0.0%	0.0%	0.0%

Net sales excluding effect of net expansion	817,209	71,035	884,365	1,328,787	50,542	1,377,914
Organic growth of net sales	12.1%	–15.4%	9.3%	7.4%	4.4%	7.4%

Mandatory price reductions 4)	7,920			14,453
In % of net sales of previous period	1.1%			1.2%

Net sales excluding effect of net expansion and mandatory price reductions	825,129			1,343,239
Organic growth of net sales excluding price reductions	13.2%			8.6%

1) Including eliminations of intercompany net sales

2) The effect of net expansion is calculated only including point of sales without a full year period comparison (acquisitions, openings and closure of pharmacies)

3) The effect of net expansion is calculated only including business activities without a full year period comparison (acquisitions and new license agreements)

4) Mandatory price reductions of medications reimbursed by health insurers of the specialities list (SL/LS) released by the Federal Office of Public Health (FOPH), calculated based on volumes of previous period

Organic growth of net sales first half of 2021 Products & Care

in thousand CHF	Local Pharmacies	Pharmacies at Home	Retail (B2C) 1)	Products & Brands	Services for Professionals	Professionals (B2B) 1)
Net sales	616,926	217,533	834,286	59,583	28,935	88,518
Change to previous period	9.6%	30.9%	14.4%	9.1%	–1.5%	5.4%

Effect of net expansion	16,085 2)	992 2)	17,077 2)	17,484 3)	–	17,484 3)
In % of net sales of previous period	2.9%	0.6%	2.3%	32.0%	0.0%	20.8%

Net sales excluding effect of net expansion	600,841	216,541	817,209	42,099	28,935	71,035
Organic growth of net sales	6.7%	30.3%	12.1%	–22.9%	–1.5%	–15.4%

Mandatory price reductions 4)	4,893	3,027	7,920
In % of net sales of previous period	0.9%	1.8%	1.1%

Net sales excluding effect of net expansion and mandatory price reductions	605,734	219,568	825,129
Organic growth of net sales excluding price reductions	7.6%	32.2%	13.2%

1) Including eliminations of intercompany net sales

2) The effect of net expansion is calculated only including point of sales without a full year period comparison (acquisitions, openings and closure of pharmacies)

3) The effect of net expansion is calculated only including business activities without a full year period comparison (acquisitions and new license agreements)