Organic growth of net sales - Half year report 2023

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 Retail (B2C), organic growth of net sales is calculated only including points of sales with a full year period comparison. 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 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 mandatory price reductions.

Organic growth of net sales first half of 2023

in thousand CHF	Retail (B2C)	Professionals (B2B)	Products & Care 1)	Wholesale	Logistics & IT Services	Logistics & IT 1)
Net sales	679,086	128,627	804,364	1,457,284	70,418	1,518,491
Change to previous period	2.1%	17.6%	4.2%	5.6%	10.4%	5.8%

Effect of net expansion	3,394 2)	7,208 3)	10,602	–	760 3)	760
In % of net sales of previous period	0.5%	6.6%	1.4%	0.0%	1.2%	0.1%

Net sales excluding effect of net expansion	675,691	121,419	793,762	1,457,284	69,658	1,517,731
Organic growth of net sales	1.6%	11.0%	2.8%	5.6%	9.2%	5.7%

Mandatory price reductions 4)	9,092			26,589
In % of net sales of previous period	1.4%			1.9%

Net sales excluding effect of net expansion and mandatory price reductions	684,783			1,483,873
Organic growth of net sales excluding price reductions	3.0%			7.5%

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 2023 Products & Care

in thousand CHF	Local Pharmacies	Pharmacies at Home	Retail (B2C) 1)	Products & Brands	Services for Professionals	Professionals (B2B) 1)
Net sales	640,151	39,060	679,086	89,998	38,623	128,627
Change to previous period	1.9%	4.6%	2.1%	19.8%	12.8%	17.6%

Effect of net expansion	2,525 2)	869 2)	3,394 2)	6,044 3)	1,164 3)	7,208 3)
In % of net sales of previous period	0.4%	2.3%	0.5%	8.0%	3.4%	6.6%

Net sales excluding effect of net expansion	637,626	38,191	675,691	83,954	37,460	121,419
Organic growth of net sales	1.5%	2.3%	1.6%	11.8%	9.4%	11.0%

Mandatory price reductions 4)	9,092	–	9,092
In % of net sales of previous period	1.4%	0.0%	1.4%

Net sales excluding effect of net expansion and mandatory price reductions	646,718	38,191	684,783
Organic growth of net sales excluding price reductions	2.9%	2.3%	3.0%

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 2022

in thousand CHF	Retail (B2C) 1)	Professionals (B2B)	Products & Care 1) 2)	Wholesale	Logistics & IT Services	Logistics & IT 2)
Net sales	665,192	109,341	771,689	1,379,426	63,794	1,434,631
Change to previous period 3)	2.5%	23.5%	5.2%	3.8%	26.2%	4.1%

Effect of net expansion	6,172 4)	13,467 5)	19,639	–	–	–
In % of net sales of previous period	1.0%	15.2%	2.7%	0.0%	0.0%	0.0%

Net sales excluding effect of net expansion	659,020	95,874	752,050	1,379,426	63,794	1,434,631
Organic growth of net sales 3)	1.5%	8.3%	2.5%	3.8%	26.2%	4.1%

Mandatory price reductions 6)	7,262			26,387
In % of net sales of previous period	1.1%			2.0%

Net sales excluding effect of net expansion and mandatory price reductions	666,282			1,405,813
Organic growth of net sales excluding price reductions 3)	2.6%			5.8%

1) Figures restated (refer to note 4 of the Consolidated interim financial statements)

2) Including eliminations of intercompany net sales

3) Growth rate includes minor change in segment reporting structure: adjusted growth rate on a comparable basis would be 1.8% lower for Retail (B2C), 1.6% lower for Products & Care and 0.7% higher for Wholesale and Logistics & IT

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

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

6) 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 1)	Retail (B2C) 1) 2)	Products & Brands	Services for Professionals	Professionals (B2B) 2)
Net sales	627,947	37,349	665,192	75,097	34,244	109,341
Change to previous period 3)	1.8%	15.9%	2.5%	26.0%	18.3%	23.5%

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

Net sales excluding effect of net expansion	621,774	37,349	659,020	67,375	28,499	95,874
Organic growth of net sales 3)	0.8%	15.9%	1.5%	13.0%	–1.6%	8.3%

Mandatory price reductions 6)	7,262	–	7,262
In % of net sales of previous period	1.2%	0.0%	1.1%

Net sales excluding effect of net expansion and mandatory price reductions	629,036	37,349	666,282
Organic growth of net sales excluding price reductions 3)	2.0%	15.9%	2.6%

1) Figures restated (refer to note 4 of the Consolidated interim financial statements)

2) Including eliminations of intercompany net sales

3) Growth rate includes minor change in segment reporting structure: adjusted growth rate on a comparable basis would be 26.5% lower for Pharmacies at Home and 1.8% lower for Retail (B2C)

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

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

6) 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