Economic performance
The Galenica Group generated consolidated net sales of CHF 3,479.8 million in 2020, representing a strong increase of 5.4%. The adjusted operating result (EBIT) amounted to a solid CHF 168.6 million and at +1.0% was up on the previous year (CHF 166.9 million).
Due to an accounting profit related to IAS 19 of CHF 43.0 million, mainly attributable to the adjustment of conversion rates in the Galenica Pension Fund, reported EBIT increased by 25.9% to CHF 213.3 million (previous year: CHF 169.5 million). Adjusted return on sales (ROS) declined slightly to 4.8% in the reporting year (previous year: 5.1%). This development was influenced by the strong sales growth with lower margins in the Services Business sector and COVID-19 effects.
Net profit increased by 37.8% year-on-year to CHF 172.7 million, heavily influenced by the IAS 19 effect mentioned above. On a comparable basis, adjusted net profit amounted to CHF 138.0 million (+2.8%). The Swiss pharmacy market grew by 2.9% (IQVIA, Pharmaceutical Market Switzerland 2020) in 2020, despite government-mandated price reductions. Given slightly declining volumes (–1.8%, IQVIA, Pharmaceutical Market Switzerland 2020), this is a clear indication that market growth was driven by increasing sales of high-priced medications.
