Notes to the consolidated interim financial statements of the Galenica Group
1. Group organisation
General information
Galenica is a fully-integrated healthcare service provider in Switzerland. The network includes the densest pharmacy network in Switzerland and is also a provider of wholesale and pharmaceutical logistics. Further the group develops and distributes its own healthcare products as well as the brands of business partners. The Galenica Group’s portfolio is supplemented by services in the home care sector, diagnostics and digital solutions for healthcare professionals.
The parent company is Galenica Ltd., a Swiss public limited company with its headquarters in Bern. The registered office is at Untermattweg 8, 3027 Bern, Switzerland. Shares in Galenica Ltd. are traded on the SIX Swiss Exchange under securities no. 36067446 (ISIN CH0360674466).
The Board of Directors released the consolidated interim financial statements 2026 on 5 August 2026 for publication.
2. Accounting principles
Basis of preparation
The unaudited consolidated interim financial statements of Galenica have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standard Board (IASB), as well as the interpretations of the IFRS Interpretations Committee (IFRIC) and the provisions of Swiss law. The consolidated interim financial statements have been prepared using the same accounting principles as the consolidated financial statements for the year ending 31 December 2025 and comply with IAS 34 – Interim Financial Reporting. The consolidated interim financial statements should be read in conjunction with the consolidated financial statements for the year ending 31 December 2025 as they update previously reported information.
Galenica's consolidated interim financial statements are prepared in Swiss francs (CHF) and, unless otherwise indicated, figures are rounded to the nearest CHF 1,000.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals provided. Totals are calculated using the underlying amount rather than the presented rounded number.
Foreign currencies are not material for the consolidated interim financial statements.
Estimation uncertainty, assumptions and judgments
The preparation of the Group's consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expense, and the disclosure of contingent liabilities as at the reporting date. Although these estimates and assumptions are made on the basis of all available information and with the greatest of care, the actual results may differ.
Seasonal influences on operations
Sales in the business sectors in which Galenica operates are usually not significantly influenced by seasonal or cyclical fluctuations during the financial year.
Income taxes
Current income taxes are based on an estimate of the expected income tax rate for the full year.
Amendments to IFRS Accounting Standards
As at 1 January 2026 Galenica adopted the following amended IFRS Accounting Standards:
- Amendments to the Classification and Measurement of Financial Instruments — Amendments to IFRS 9 and IFRS 7
- Annual Improvements to IFRS Accounting Standards - Volume 11
These changes have no material impact on the financial position, financial performance and cash flows of Galenica nor on disclosures in these consolidated interim financial statements. Galenica has not early adopted any other standard or interpretation that has been issued but is not yet effective.
Future amendments to IFRS Accounting Standards
Galenica has not early adopted any of the following amendment to standards or interpretations that are potentially relevant for Galenica. Galenica intends to apply the new or amended standard for the first time in the financial year beginning on the date shown below:
- IFRS 18 – Presentation and Disclosure in financial statements (1 January 2027)
Galenica is currently working to identify all the impacts the introduction of IFRS 18 will have on the financial statements and related notes.
3. Operating segment information
Basis of preparation (Adjustments & Eliminations)
Galenica adjusts its internal reporting compared with the reported IFRS results to enhance comparability by neutralising certain IFRS‑driven valuation effects that management considers to be outside operational performance.
- Under IFRS 16, lease contracts—particularly relevant due to Galenica’s extensive pharmacy network—significantly affect the balance sheet and the income statement. For management reporting, leases are treated as operating leases, with all lease expenses recognised evenly in operating costs, while depreciation, interest and the related tax effects are removed.
- Following recent acquisitions, depreciation, amortisation and impairment arising from IFRS 3 purchase price allocations are excluded from operational performance metrics. This adjustment applies prospectively from the 2025 financial year.
- Value changes of investments in associates or joint ventures, as they do not reflect normal operating activities and may distort period-to-period comparability.
- Income statement items arising from the discontinuation of production activities at Bichsel are excluded from segment reporting as these effects are not related to continuing business operations.
- Defined benefit plans and long‑service awards resulted from IAS 19 are recognised at Group level.
Operating segment information first half of 2025
Operating segment information of the interim financial statement 2025 has been restated to the changed organisational and management structure and the internal financial reporting to the CODM.
Operating segment information first half of 2026
Operating segment information first half of 2026
|
in thousand CHF |
Products & Care |
Logistics & IT |
Group Services |
Adjustments & Eliminations |
Galenica Group |
|
Net sales |
967,197 |
1,684,913 |
77,483 |
–593,139 |
2,136,454 |
|
– of which intersegmental net sales |
55,754 |
463,574 |
73,810 |
–593,139 |
– |
|
– of which net sales to third parties |
911,443 |
1,221,338 |
3,673 |
– |
2,136,454 |
|
Cost of goods |
–507,620 |
–1,532,518 |
– |
513,822 |
–1,526,316 |
|
Personnel costs |
–220,817 |
–65,283 |
–46,113 |
–696 |
–332,908 |
|
Share of profit from associates and joint ventures |
4,276 |
313 |
– |
182 |
4,772 |
|
Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
106,861 |
32,455 |
12,229 |
20,022 1) |
171,566 |
|
Depreciation, amortisation and impairment |
–13,580 |
–7,182 |
–12,925 |
-49,662 2) |
–83,349 |
|
Earnings before interest and taxes (EBIT) |
93,282 |
25,272 |
–696 |
–29,640 |
88,218 |
|
Interest income |
|
|
|
|
537 |
|
Interest expense |
|
|
|
|
–7,539 |
|
Other net financial result |
|
|
|
|
–851 |
|
Earnings before taxes (EBT) |
|
|
|
|
80,365 |
|
Income taxes |
|
|
|
|
–13,090 |
|
Profit from continuing operations |
|
|
|
|
67,275 |
|
|
|
|
|
|
|
|
Assets |
1,984,673 |
1,232,518 |
480,102 |
-372,930 3) |
3,324,363 |
|
Investments in associates and joint ventures |
139,951 |
585 |
– |
–1,920 |
138,615 |
|
Liabilities |
425,835 |
742,475 |
1,069,210 |
-328,113 4) |
1,909,408 |
|
|
|
|
|
|
|
|
Investments in property, plant and equipment |
10,958 |
2,379 |
2,074 |
– |
15,411 5) |
|
Investments in intangible assets |
2,474 |
4,139 |
9,623 |
–307 |
15,929 6) |
|
|
|
|
|
|
|
|
Employees as at 30 June (FTE) |
4,781 |
1,307 |
535 |
– |
6,623 |
1) Including lease expense adjustment (IFRS 16) of CHF 31.1 million, One-off effects from the discontinuation of the production activities at Bichsel of CHF -15.3 million and effects of IAS 19 from defined benefit plans and long-service awards of CHF 4.5 million
2) Including depreciation and impairment of right-of-use asset adjustment (IFRS 16) of CHF -29.2 million, depreciation and impairment of intangible asset adjustment resulted from IFRS 3 of CHF -5.4 million and One-off effects from the discontinuation of the production activities at Bichsel of CHF -15.2 million
3) Of which elimination of intercompany positions of CHF -567.5 million, considering right-of-use assets (IFRS 16) of CHF 221.2 million, intangible assets (IFRS 3) of CHF -8.6 million and other unallocated amounts of CHF -18.0 million
4) Of which elimination of intercompany positions of CHF -567.5 million, considering lease liabilities (IFRS 16) of CHF 226.5 million and other unallocated amounts of CHF 12.9 million
5) Of which non-cash investments of CHF 1.8 million
6) Of which non-cash investments of CHF 4.3 million
Operating segment information first half of 2025 (restated)
Operating segment information first half of 2025 (restated)
|
in thousand CHF |
Products & Care |
Logistics & IT |
Group Services |
Adjustments & Eliminations |
Galenica Group |
|
Net sales |
867,330 |
1,617,621 |
74,751 |
–564,336 |
1,995,365 |
|
– of which Intersegmental net sales |
57,439 |
435,436 |
71,461 |
–564,336 |
– |
|
– of which net sales to third parties |
809,891 |
1,182,185 |
3,290 |
– |
1,995,365 |
|
Cost of goods |
–465,817 |
–1,467,441 |
– |
488,730 |
–1,444,527 |
|
Personnel costs |
–194,335 |
–64,751 |
–44,494 |
–1,161 |
–304,740 |
|
Share of profit from associates and joint ventures |
2,779 |
90 |
– |
80 |
2,949 |
|
Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
91,027 |
37,164 |
10,477 |
25,233 2) |
163,901 |
|
Depreciation, amortisation and impairment |
–10,076 |
–6,994 |
–11,388 |
-26,668 3) |
–55,126 |
|
Earnings before interest and taxes (EBIT) |
80,951 |
30,170 |
–911 |
–1,435 |
108,774 |
|
Interest income |
|
|
|
|
620 |
|
Interest expense |
|
|
|
|
–6,286 |
|
Other net financial result |
|
|
|
|
3,394 |
|
Earnings before taxes (EBT) |
|
|
|
|
106,502 |
|
Income taxes |
|
|
|
|
–17,858 |
|
Profit from continuing operations |
|
|
|
|
88,644 |
|
|
|
|
|
|
|
|
Assets 1) |
1,984,800 |
955,905 |
567,801 |
-211,366 4) |
3,297,140 |
|
Investments in associates and joint ventures 1) |
149,427 |
271 |
– |
–1,809 |
147,888 |
|
Liabilities 1) |
397,978 |
548,298 |
1,036,720 |
-170,858 5) |
1,812,138 |
|
|
|
|
|
|
|
|
Investments in property, plant and equipment |
8,417 |
4,781 |
1,899 |
– |
15,097 6) |
|
Investments in intangible assets |
1,044 |
4,359 |
7,209 |
–74 |
12,538 7) |
|
|
|
|
|
|
|
|
Employees as at 30 June (FTE) |
4,359 |
1,236 |
530 |
– |
6,125 |
1) Figures as at 31 December 2025
2) Including lease expense adjustment (IFRS 16) of CHF 28.2 million and effects of IAS 19 from defined benefit plans and long-service awards of CHF -2.6 million
3) Including depreciation and impairment of right-of-use asset adjustment (IFRS 16) of CHF -26.7 million
4) Of which elimination of intercompany positions of CHF -426.8 million, considering right-of-use assets (IFRS 16) of CHF 236.8 million, intangible assets (IFRS 3) of CHF -3.2 million and other unallocated amounts of CHF -18.2 million
5) Of which elimination of intercompany positions of CHF -426.8 million, considering lease liabilities (IFRS 16) of CHF 242.6 million and other unallocated amounts of CHF 13.4 million
6) Of which non-cash investments of CHF 1.3 million
7) Of which non-cash investments of CHF 2.2 million
4. Business combinations
In the first half of 2026, the scope of consolidation has changed as a result of the following transactions:
Acquisition of pharmacies. Galenica acquired 100% of the interests in pharmacies at various locations in Switzerland. Upon acquisition, most of the pharmacies were merged with Galenicare Ltd.
The total purchase consideration amounted to CHF 14.3 million, of which CHF 12.5 million was settled in cash. A deferred consideration in the amount of CHF 1.8 million was recognised, which is due in the second half year of 2026. The fair value of the provisional net identifiable assets amounts to CHF 2.8 million at the acquisition date. The goodwill of CHF 11.5 million was allocated to the operating segment Products & Care and corresponds to the added value of the pharmacies based on their locations and the know-how of the employees gained. Transaction costs were not material.
Acquisition of Puravita AG. On 5 January 2026, Galenica acquired an additional 32.91% of the shares in the Swiss company Puravita AG, which had previously been accounted for as an investment in an associate and Galenica now holds 80% of the interests in Puravita. Puravita is specialised in operating an online shop in the drugstore sector and in particular in the over-the counter range. The remaining 20% of the shares were retained by the previous owner. Non-controlling interests have been measured at the proportionate share of net identifiable assets. The remaining shareholders have a put option to sell their shares to Galenica which gives rise to a non-current financial liability in the amount of CHF 3.0 million.
The purchase consideration amounted to CHF 3.4 million and was fully settled in cash. The fair value of the net identifiable assets amounted to CHF 3.6 million at the acquisition date of which CHF 0.7 million were recognised as non-controlling interests. The goodwill of CHF 5.4 million was allocated to the operating segment Products & Care and corresponds to the added value based on the synergies with the existing pharmacy network and its online shops. Transaction costs were not material.
Business combinations
|
in thousand CHF |
Puravita |
Pharmacies |
2026 Total |
|
Cash and cash equivalents |
996 |
785 |
1,780 |
|
Trade receivables |
161 |
1,493 |
1,654 |
|
Inventories |
1,208 |
921 |
2,129 |
|
Other current assets |
2,040 |
– |
2,040 |
|
Property, plant and equipment |
157 |
352 |
509 |
|
Right-of-use assets |
– |
1,925 |
1,925 |
|
Intangible assets |
1,812 |
1,014 |
2,826 |
|
Financial assets |
– |
25 |
25 |
|
Other current and non-current assets |
– |
271 |
271 |
|
Trade payables |
–2,781 |
–711 |
–3,492 |
|
Financial liabilities |
– |
–487 |
–487 |
|
Lease liabilities |
– |
–1,925 |
–1,925 |
|
Net deferred tax liabilities |
147 |
–293 |
–145 |
|
Other current and non-current liabilities |
–143 |
–562 |
–705 |
|
Fair value of net assets |
3,597 |
2,807 |
6,404 |
|
Goodwill |
5,362 |
11,491 |
16,854 |
|
Non-controlling interests |
–719 |
– |
–719 |
|
Fair value of previously held interests |
–4,850 |
– |
–4,850 |
|
Purchase consideration |
3,390 |
14,298 |
17,688 |
|
Cash acquired |
–996 |
–785 |
–1,780 |
|
Deferred consideration |
– |
–1,797 |
–1,797 |
|
Net cash flow from current business combinations |
2,394 |
11,717 |
14,111 |
|
Payment of consideration due to previous business combinations |
|
|
4,816 |
|
Net cash flow from business combinations |
|
|
18,927 |
Pro forma figures for acquisitions made in the first half of 2026
Since their inclusion in Galenica's scope of consolidation, the businesses acquired contributed net sales of CHF 18.4 million and an operating result (EBIT) of minus CHF 0.6 million to the Group's results. If these acquisitions had occurred on 1 January 2026, they would have contributed additional net sales of CHF 1.6 million and no material EBIT impact.
5. Net sales
Net sales first half of 2026
Based on the changed organisational and management structure of Galenica, the internal reporting and disaggregation of net sales has been adjusted accordingly. Net sales information for the previous period has been restated to conform to the new presentation.
Net sales first half of 2026
|
in thousand CHF |
Sale of goods |
Sale of services |
Total net sales |
Intersegmental net sales |
Total net sales to third parties |
of which sale of goods to third parties |
of which sale of services to third parties |
|
Pharmacies Omni-Channel |
709,198 |
47,704 |
756,902 |
–8,226 |
748,676 |
709,139 |
39,537 |
|
Products & Brands |
88,347 |
2,834 |
91,181 |
–44,572 |
46,608 |
43,945 |
2,663 |
|
Services & Production |
60,816 |
2,560 |
63,377 |
–9,372 |
54,005 |
51,453 |
2,552 |
|
Diagnostics |
– |
62,157 |
62,157 |
–3 |
62,154 |
– |
62,154 |
|
Products & Care 1) |
854,330 |
112,868 |
967,197 |
–55,754 |
911,443 |
804,536 |
106,907 |
|
Wholesale |
1,642,826 |
4,424 |
1,647,250 |
–460,726 |
1,186,525 |
1,182,855 |
3,669 |
|
Logistics & IT Services |
21 |
38,846 |
38,867 |
–4,053 |
34,814 |
42 |
34,772 |
|
Logistics & IT 1) |
1,642,847 |
42,066 |
1,684,913 |
–463,574 |
1,221,338 |
1,182,897 |
38,441 |
|
Group Services |
– |
77,483 |
77,483 |
–73,810 |
3,673 |
– |
3,673 |
|
Eliminations 2) |
–509,743 |
–83,395 |
–593,139 |
593,139 |
– |
– |
– |
|
Galenica Group |
1,987,433 |
149,021 |
2,136,454 |
– |
2,136,454 |
1,987,433 |
149,021 |
1) Including eliminations of intercompany net sales
2) Eliminations of intersegmental net sales
Net sales first half of 2025 (restated)
Net sales first half of 2025 (restated)
|
in thousand CHF |
Sale of goods |
Sale of services |
Total net sales |
Intersegmental net sales |
Total net sales to third parties |
of which sale of goods to third parties |
of which sale of services to third parties |
|
Pharmacies Omni-Channel |
661,488 |
51,469 |
712,957 |
–7,538 |
705,419 |
661,492 |
43,927 |
|
Products & Brands |
98,062 |
3,008 |
101,069 |
–46,781 |
54,288 |
51,442 |
2,846 |
|
Services & Production |
55,396 |
2,535 |
57,931 |
–7,748 |
50,183 |
47,661 |
2,522 |
|
Products & Care 1) |
812,490 |
54,840 |
867,330 |
–57,439 |
809,891 |
760,596 |
49,295 |
|
Wholesale |
1,574,451 |
5,130 |
1,579,581 |
–432,668 |
1,146,913 |
1,143,060 |
3,853 |
|
Logistics & IT Services |
–11 |
39,210 |
39,199 |
–3,927 |
35,272 |
9 |
35,262 |
|
Logistics & IT 1) |
1,574,437 |
43,184 |
1,617,621 |
–435,436 |
1,182,185 |
1,143,070 |
39,115 |
|
Group Services |
– |
74,751 |
74,751 |
–71,461 |
3,290 |
– |
3,290 |
|
Eliminations 2) |
–483,261 |
–81,075 |
–564,336 |
564,336 |
– |
– |
– |
|
Galenica Group |
1,903,666 |
91,700 |
1,995,365 |
– |
1,995,365 |
1,903,666 |
91,700 |
1) Including eliminations of intercompany net sales
2) Eliminations of intersegmental net sales
6. Significant events
In March 2026 Galenica decided to discontinue Bichsel’s production division. The production activities at the site are expected to cease by end of August 2026. The closure does not lead to a discontinuation of a major line of business. As a consequence of the decision, the Group recognised restructuring costs in the amount of CHF 12.0 million in the first half of 2026, primarily relating to personnel expenses and site‑related costs. In addition, impairment losses of CHF 17.2 million were recognised on property, plant and equipment as well as inventories and CHF 1.3 million were recognised on impairment losses related to right of use assets. The restructuring costs and impairment losses are included in the consolidated income statement under personnel costs, depreciation and impairment and other operating costs. The total impact on EBIT for the first half of 2026 amounted to CHF 30.4 million. No further material financial effects are expected beyond those recognised as at 30 June 2026.
7. Fair values of financial assets and financial liabilities
Fair value
|
|
|
30.06.2026 |
|
31.12.2025 |
|
in thousand CHF |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
|
Bond (level 1 of the fair value hierarchy) |
769,330 |
785,577 |
769,288 |
785,520 |
With the exception of the bonds the carrying amounts of all financial instruments approximate to the fair value or fair value disclosure is not required (lease liabilities).
As at 30 June 2026 Galenica holds equity instruments designated at fair value through other comprehensive income including a 10.4% (previous year end: 10.4%) investment in the listed (level 1 of the fair value hierarchy) company Redcare Pharmacy N.V., Netherlands, with a fair value of CHF 129.8 million (CHF 131.0 million as at 31 December 2025) and other investment in non-listed (level 3 of the fair value hierarchy) companies with a fair value of CHF 0.3 million (CHF 1.3 million as at 31 December 2025). These investments were irrevocably designated at fair value through other comprehensive income as Galenica considers these investments to be strategic in nature. Galenica recognised in the consolidated statement of comprehensive income a remeasurement loss of CHF 2.2 million (previous year: loss of CHF 80.7 million as at 30 June 2025).
Fair value of financial instruments (level 3 of the fair value hierarchy)
Fair value of contingent consideration liabilities from business combinations (level 3 of the fair value hierarchy)
|
in thousand CHF |
2026 |
2025 |
|
1 January |
4,150 |
30,907 |
|
Change in fair value (recognised in profit or loss) |
– |
–4,257 |
|
Payments (cash out) |
–4,150 |
–22,500 |
|
30 June / 31 December |
– |
4,150 |
Fair value of equity instruments designated at fair value through other comprehensive income (level 3 of the fair value hierarchy)
|
in thousand CHF |
2026 |
2025 |
|
1 January |
1,330 |
3,181 |
|
Change in fair value (recognised in other comprehensive income) |
–1,012 |
–1,851 |
|
30 June / 31 December |
318 |
1,330 |
Fair value and sensitivity analysis of contingent consideration liabilities from discontinued operations
Determining the contingent consideration liability in connection with the sale of Mediservice forecasted gross margin of the discontinued operation was identified as key assumptions. During 2025, a post-transaction review was conducted together with Mediservice's strategic partners. As a result of this review, the original contractual arrangement relating to the contingent consideration was amended, in particular by extending its duration. Consequently, the contingent consideration liability related to discontinued operations was increased by CHF 0.5 million. An initial tranche of the contingent consideration liability was paid in the current financial period in the amount of CHF 3.0 million (previous year: none). Accordingly Galenica has recorded the amount of CHF 2.5 million (previous year: CHF 5.1 million as at 31 December 2025) as other liability in the consolidated statement of financial position.
Sensitivity analysis of contingent consideration liabilities from business combinations (level 3 of the fair value hierarchy)
An initial tranche of the contingent consideration liability arising from the business combination of Bahnhof Apotheke Langnau was settled during financial year 2025 with an amount of CHF 9.0 million. The remaining tranche is contingent upon the net sales achieved by the acquired business in the years 2026 and 2027. Galenica has recorded no amount as contingent consideration liability based on assumed probability-adjusted net sales. The possible future cash outflows range between zero and CHF 20.0 million. An increase of 20% in the expected net sales of the acquired business 2026 and 2027 would increase the contingent consideration liability by CHF 5.0 million.
The contingent consideration liability arising from the business combination of Aquantic was fully settled in January 2026 for CHF 4.2 million.
8. Contingent liabilities and commitments
Galenica signed a purchase agreement to acquire a pharmacy within the next few months. The purchase price will be fixed at the time of transfer of ownership based on net asset value and discounted cash flow. The total purchase consideration is estimated at CHF 1.2 million and is due with the closing of the transaction. The resulting payment obligation is expected to become due in the second half of 2026.
9. Subsequent events
The following business combinations occurred between 30 June 2026 and 5 August 2026, the date that the consolidated interim financial statements were released for publication.
Acquisition of pharmacies. Galenica acquired 100% of the interests in pharmacies at various locations in Switzerland.
The purchase consideration was CHF 1.9 million and the fair value of the provisional net assets resulting from these additions was estimated at CHF 0.6 million at the acquisition date. Since the transactions were concluded shortly before the consolidated financial statements were issued, no further information was available to disclose the additional information required by IFRS Accounting Standards.
There were no further significant events after the reporting date.