Galenica : half year results 2017

The Galenica Group is presenting its half year results for the first time since the initial public offering (IPO) of 7 April 2017.
Consolidated net sales increased in a challenging market environment by 6.8% to
CHF 1,587.5 million in the first half of 2017. The acquisition of physicians' wholesaler Pharmapool, the reinforcement of the pharmacy network, and newly-acquired and in-licensed brands all con-tributed to this.
The operating result (EBIT) rose by 17.6% to CHF 71.5 million and, on a comparable basis (excluding the effects of IAS 19), grew by 14.1% to CHF 76.6 million. Included in this are one-off effects totalling CHF 7.0 million.
Galenica posted a profit of CHF 57.9 million. On a comparable basis (excluding the effects of IAS 19), net profit was CHF 62.1 million. The profit includes one-off effects of CHF 6.3 million.

Guidance for 2017 confirmed
Based on the positive business performance to date, management is confident of achieving the ambitious targets for 2017. Galenica therefore confirms and specifies the outlook com-municated for 2017 in the course of the IPO, i.e.: sales growth in line with the first half of 2017 and an increase in operating result (EBIT) (excluding the effects of IAS 19) of between 7% and 12% year-on-year, including one-off effects totalling CHF 7.0 million. Consequently, the outlook regarding dividends also remains unchanged, and Galenica aims to be able to propose a dividend payment of CHF 80 million to the 2018 Annual General Meeting.

Expansion of activities and launch of new products and services
The Retail Business sector strengthened its pharmacy network and further harmonised pro-cesses for all pharmacy formats. Furthermore, innovative projects have been launched, in-cluding 'Click & Collect' at Coop Vitality, the Aprioris walk-in clinic and MedCenter at the MediService site.

The product range in the Products & Brands Business sector has been expanded. Since May 2017, the portfolio of strong brands also includes the newly-acquired iconic brands Merfen and Vita-Merfen. In addition, in the first quarter 2017, Lierac and Phyto - the premium brands for skincare and haircare from the French Alès Groupe - were launched exclusively in Switzerland.

In the Services Business sector, Galexis expanded its offering for self-dispensing physicians with the acquisition of physicians' wholesaler Pharmapool at the beginning of 2017.