Galenica Group
Galenica Group sales grew by 5.0% to CHF 1,995.4 million in the first half of 2025.
Net sales
+5.0%
Galenica Group CHF 1,995.4 million
EBIT adjusted4
+10.9%
Galenica Group CHF 109.9 million
Employees
7,991
Galenica Group
Galenica reports pleasing growth in a positive market environment
Galenica Group sales grew by 5.0% to CHF 1,995.4 million in the first half of 2025. Both the “Products & Care” segment with growth of 4.6% and the “Logistics & IT” segment with growth of 5.5% contributed to the sales growth. Growth was driven by strong demand for prescription medicines, including GLP-1-based1 weight loss products and drugs related to the severe flu wave at the beginning of the year. Compared with the same period in the previous year, there was one less day of sales activity, with a correspondingly dampening effect on sales.
As a result, Galenica Group sales grew slightly more dynamically than the market environment, with growth in the pharmaceutical market of 4.8%2 and in the consumer healthcare market of 0.6%3.
Reported EBIT increased by 6.2% to CHF 108.8 million. Adjusted4 EBIT for the Galenica Group increased by 10.9% to CHF 109.9 million.
EBIT performance in the first half of 2025 benefited from positive one-time effects totalling CHF 5.4 million. Disregarding these positive one-time effects, adjusted4 EBIT would have increased by 5.4%. On the one hand, the Federal Supreme Court issued its ruling in January 2025 in the proceedings initiated by the Swiss Competition Commission (COMCO) in 2017 concerning HCI Solutions. This should result in a significant reduction in the penalty originally imposed (the penalty will be reassessed by the Federal Administrative Court). In addition, in the “Markant centralised processing” case, the penalty imposed by COMCO was significantly lower than originally expected. These one-time factors had a positive impact on EBIT in the “Logistics & IT” segment.
Adjusted4 return on sales (ROS) increased year-on-year from 5.2% to 5.5%. Disregarding the positive one-time effects in the amount of CHF 5.4 million, this would have resulted in a stable adjusted4 return on sales of 5.2% in the first half of 2025.
The reported net profit of the Galenica Group was CHF 88.6 million (+11.8%, first half of 2024: CHF 79.3 million), while adjusted4 net profit was CHF 90.7 million (+16.8%, first half of 2024: CHF 77.7 million). Investments in the first half of 2025 amounted to CHF 27.6 million (first half of 2024: CHF 38.4 million). This was mainly attributable to conversions and renovations of pharmacies and other operational sites as well as investments in the development of digital infrastructure.
The Galenica Group’s balance sheet has remained strong. Adjusted4 shareholders’ equity increased compared with 30 June 2024 to CHF 1,464.5 million (+2.6%). As at the balance sheet date, unrealised losses on the investment in Redcare Pharmacy N.V. had a negative impact of around CHF 80 million on other comprehensive income (OCI), which had a correspondingly negative effect on equity development. Despite the losses recognised in the reporting period, the current market value of the investment remains above its original cost. Adjusted4 net debt, i.e., excluding lease liabilities, remained stable compared with the previous year and amounted to CHF 532.9 million, which corresponds to 1.9x adjusted4 EBITDA.
Adjusted4 operating cashflow before changes in current assets amounted to CHF 125.8 million (first half of 2024: CHF 97.8 million). Taking changes in current assets into account, operating cashflow amounted to CHF 82.4 million (first half of 2024: CHF 17.6 million). Free cash flow after acquisitions amounted to CHF 16.1 million (first half of 2024: CHF -45.3 million). The higher free cash flow compared with the previous period is attributable in particular to the increased earnings, active management of net working capital and a deferral of investments to the second half of 2025.
Guidance 2025
Galenica believes the guidance for 2025 remains unchanged in terms of consolidated net sales (growth between 3% and 5%) and dividends (at least at the previous year’s level). Due to positive one-time effects of CHF 5.4 million, Galenica now expects EBIT4 growth of between 7% and 9%, compared with previously expected growth of between 4% and 6%.
In early July 2025, Galenica announced the acquisition of the diagnostic service provider Labor Team. As the closing date for the transaction has not yet been determined, Labor Team is not yet included in the guidance for 2025.
1) GLP-1 stands for "Glucagon-like Peptide 1", a hormone produced in the gut that plays an important role in regulating blood sugar levels
2) IQVIA, Swiss Pharmaceutical Market, YTD June 2025
3) IQVIA, Consumer Health Market Schweiz, YTD June 2025
4) Excluding the effects of IFRS 16 and IAS 19. See chapter "Alternative performance measures"