Financial Performance Group

Strong sales performance

Galenica achieved pleasing sales growth of 7.1% to CHF 2,136.5 million in the first half of the year. The main drivers are strong growth in the pharmacy business and the continued increase in wholesale sales. The home care business also performed very well, with strong growth in the “Services &  Production” sector of 9.4% to CHF 63.4 million, as well as the ”Diagnostics” sector, which contributed 3.1% to the increase in sales with CHF 62.2 million.

By way of comparison, the Swiss pharmaceutical market grew by 3.7% in the reporting year (IQVIA, Pharmaceutical Market Switzerland, 06/2026). Sales volumes were 0.6% percent lower.

EBIT growth in line with strong sales performance

The adjusted¹⁾ operating result (EBIT) increased by 7.1% year on year to CHF 117.7 million (previous year: CHF 109.9 million). In addition to strong organic growth, earnings were positively influenced by the acquisition of Labor Team, which was completed in the previous year. On the other hand, EBIT growth was dampened by positive special factors of CHF 5.4 million in the previous year. This was due to significantly lower than originally threatened sanctions in two competition proceedings, which had a positive impact on earnings in the “Logistics & IT” segment during the same period last year. Adjusted for this effect, the EBIT growth was 12.6%.

The one-off special costs associated with the closing of the Bichsel production division are expected to amount to around CHF 30 million, which is lower than originally anticipated. In the first half of 2026, closure costs of CHF 30.4 million were recognised, of which CHF 17.2 million was attributable to impairments of inventories, production and other tangible assets. As a result, reported EBIT declined by 18.9% to CHF 88.2 million (previous year: CHF 108.8 million).

Adjusted¹⁾ net profit from continuing operations increased by 1.3% to CHF 91.9 million (previous year: CHF 90.7 million). Reported net profit from continuing operations decreased by 24.1% to CHF 67.3 million due to the closure of the Bichsel production division (previous year: CHF 88.6 million).

Balance sheet remains strong

The Galenica Group’s balance sheet remains strong. Adjusted¹⁾ equity decreased slightly by 1.5% to CHF 1,442.6 million compared to 30 June 2025, due to the negative value change in the investment in Redcare in the second half of 2025. Adjusted¹⁾ net debt, excluding lease liabilities, increased by CHF 304 million to CHF 836.9 million compared to 30 June 2025, which corresponds to 2.7 times adjusted¹⁾ EBITDA. The reason for the increase is the acquisition of Labor Team in September 2025, as well as a slight increase in net working capital resulting from delayed invoicing due to tariff changes and a build-up of inventory in preparation for the ERP transition of the distribution centre in Niederbipp in the second half of 2026.

Solid operating cash flow

Adjusted¹⁾ operating cash flow before changes in net working capital was slightly above the previous year’s level (CHF 125.8 million) at CHF 126.7 million in the 2026 financial year. Following the implementation of sustainable measures to reduce net working capital in the previous year, the increase in net working capital in the current business period is primarily attributable to seasonal factors. In addition, there is a temporarily higher level of receivables due to delayed invoicing resulting from tariff changes, and an increase in inventory in preparation for the ERP transition of the distribution centre in Niederbipp in the second half of 2026.

Investments in tangible and intangible assets amounted to CHF 31.3 million in the first half of 2026 (previous year: CHF 27.6 million). These were mainly attributable to the remodelling and renovations of pharmacies, the expansion of logistics infrastructure at Galexis, and investments in the expansion of digital infrastructure.

¹⁾ See definition in section “Alternative performance measures”