A strong network for Switzerland
Dear Shareholders, Ladies and Gentlemen,
Despite the challenging market environment in the first half of 2024, we achieved solid sales growth of 2.6% and thus gained market shares. After Galenica Group sales increased by 4.8% at the end of April 2024, growth slowed significantly in May and especially June 2024 due to various factors. We expect a return to significantly stronger growth in the second half of 2024 and are therefore able to confirm our guidance for the 2024 financial year as well as the forecast for net sales, EBIT and dividend. We have compiled a detailed operational review of the first half of 2024 for you in the Management Report.
With the Galenica network, we are not only the largest, but also the top-performing healthcare provider operating throughout Switzerland. Through our products and services, we offer patients and customers today a wide range of integrated solutions, enabling us to meet their current and future needs in a more seamless, efficient and personal way. We achieve this by working closely together as a network – both within the Galenica Group and with external partners. We contribute our expertise and use synergies to offer a wide range of services from a single source.
“Consultation plus is a holistic approach for the further development and positioning of healthcare services in our pharmacies.”
Pharmacies relieve the burden on the healthcare system
Every day, we make a significant contribution to the people of Switzerland in our pharmacies – in an easily accessible and cost-efficient manner. To enhance the customer experience in pharmacies and further establish the pharmacy as the first point of contact for health issues, we successfully tested the “Consultation plus” concept last year. “Consultation plus” is not a new service, but a holistic approach to developing and positioning healthcare services in our pharmacies. The figures show that they are in high demand among clients. In the first half of 2024, 93,000 paid consultations and services were provided in Galenica pharmacies, 32% more than in the previous year.
As a result of the positive response from the pilot project, the “Consultation plus” concept will be extended to other Galenica pharmacies. Vaccinations have been particularly popular in recent times. In total, 30% more vaccine doses were administered in the first half of 2024 than in the previous period, mainly against influenza and TBE (excluding COVID-19 vaccinations). With our easily accessible offerings in pharmacies, we not only meet customer needs, we also help to curb the rising cost pressure in the healthcare sector.
Together, we create added value for patients
Our network makes an important contribution to efficiency in a high-quality healthcare system. However, we are not only acting on our own. Wherever possible, we are looking for strong partners who are specialists in their field. Together, we create added value for our customers and patients. Together with other players in the healthcare sector, we are taking responsibility for current and future generations and promoting new approaches.
For instance, our collaboration with Medgate is continuing following the successful pilot phase. With the “Book a Doc” service, our pharmacies have a valuable additional tool at their disposal for treating even more complex cases directly from the pharmacy: a doctor is consulted digitally. This not only saves patients time, it also helps to reduce treatment costs and relieve the burden on the system.
Collaboration with the various health insurers was also expanded further in the first half of the year. They are increasingly recognising the services provided by our pharmacies and are reimbursing the costs of the advice and treatment given in the pharmacies in their insurance models. Assura, AXA, KPT and atupri recently integrated numerous health services such as a heart and diabetes check or protective vaccinations into their supplementary insurance models.
As a network, we also strive for partnerships with smaller, less established companies who bring forward-looking solutions to the market.
We are bundling our offers in the home care sector
A current example of the strength of the Galenica network is our “Guide Me” Home Care Coordination Service. Located within Mediservice, it coordinates the treatment of people with chronic illnesses by connecting various service providers and bringing together services from the Galenica network and beyond. This service helps patients and relatives to organise their treatment more easily and to procure products and medical aids.
The Galenica network also offers unique services for nursing homes and home care organisations. To make these services easily accessible to this customer group, we are expanding the already established Lifestage Solutions platform into a central digital gateway to all our home care offerings. Read more about Lifestage Solutions and its successful growth in the following spotlight.
“A high level of customer loyalty, efficient processes and interconnected collaboration are key to long-term success.”
Further development from a position of strength
Let’s take a look into the future. The need for advisory and treatment services in pharmacies is constantly growing. With increasing pressure on healthcare costs and the growing importance of healthcare services offered both in pharmacies and digitally, the need for integrated care models will continue to increase. A high level of customer loyalty, efficient processes and interconnected collaboration are key to long-term success. Accordingly, Galenica is further developing its organisation from a position of strength and aligning its pharmacy business with an even greater focus on customers.
Expansion of the Executive Committee
With the appointment of Stephan Mignot, Head of Pharmacies Marketing, as an additional member of the Executive Committee, we are emphasising the strategic relevance and pivotal role of customer focus in the implementation of the strategy. From 1 September 2024, three members of the Executive Committee will therefore work together to expand the positioning of the pharmacy as the first point of contact for health issues with the right range of products and healthcare services: “Pharmacies Sales” under the leadership of Virginie Pache will continue to focus on sales and advisory activities as well as the expansion strategy. “Pharmacies Category Management & Health Services”, for which Daniele Madonna is responsible, will develop the best offering for omni-channel pharmacies. The newly established “Pharmacies Marketing” sector ensures an even greater customer focus.
Focused growth for our network partners
As a further adjustment, Galenica will combine the majority of network partners in the “Products & Home Care” unit under the management of Thomas Szuran as of 1 September 2024. The priority is the focused further development of the strategic growth areas “Products & Brands” and “Home Care”. The Verfora Group, the “Home Care” segment and other units will now be part of “Products & Home Care”. We are thus creating the foundation for targeted growth of the companies within the network and with our partnerships.
Handover of the position of CFO
Our long-standing CFO Felix Burkhard, who has been with the company since 1996, will hand over his responsibilities to his successor Julian Fiessinger at the end of the year. Felix Burkhard will continue in his role as Chairman of the Board of Trustees of the Galenica Pension Fund. Julian Fiessinger, who has led Investor Relations & Corporate Finance at Galenica since 2021, knows the financial market and the company inside out and will ensure continuity while also contributing fresh ideas.
We would like to thank Felix Burkhard sincerely for all the years he has worked for our company as a highly valued leader and respected business partner. We wish him a wonderful conclusion at Galenica in the coming months and also look forward to working with Julian Fiessinger.
And we would like to thank you, our valued shareholders, for placing your trust in us. We would also like to thank our partners and customers, who entrust us with their health and well-being every day. And finally, we would like to thank our employees, without whom all of this would not be possible!
Bern, 6 August 2024
Dr Markus R. Neuhaus
Chair of the Board of Directors
Marc Werner
CEO