Galenica : half-year results 2018

Price reduction measures affect sales

The Galenica Group posted solid growth in the first half of 2018, in what continued to be a very challenging market environment. Consolidated net sales increased by 0.9% to CHF 1,566.1 million. Sales growth was slowed by additional price reduction measures for medications, which were significantly higher than originally announced by the authorities.

Pleasing EBIT growth with improved profitability

Excluding the one-off effects from the prior-year period and the effects of IAS 19, EBIT rose by 7.5%, and return on sales (ROS) improved from 4.5% to 4.8%. Taking into account one-off effects, earnings before interest and taxes (EBIT) declined by 2.0% to CHF 70.1 million, and excluding the effects of IAS 19 by 2.3% to CHF 74.9 million.

Excluding the one-off effects from 2017 and the effects of IAS 19, net profit increased by 8.2%. Taking into account one-off effects, net profit declined by 2.4% to CHF 56.5 million, and excluding the effects of IAS 19 by 2.7% to CHF 60.4 million.

Key figures for the Galenica Group, first half of 2018

(in million CHF)	1st half year 2018	1st half year 2017	Change
Net sales1) Health & Beauty segment - Retail - Products & Brands Services segment Corporate and eliminations Galenica Group	745.7 695.8 48.7 1'177.1 (356.7) 1'566.1	727.5 678.1 48.7 1'166.9 (342.0) 1'552.4	+2.5% +2.6% - +0.9% +0.9%
EBIT adjusted2) Health & Beauty segment Services segment Corporate and eliminations Galenica Group	54.3 22.3 (1.7) 74.9	49.5 28.73) (1.6) 76.63)	+9.5% -22.1% -2.3%
Net profit adjusted2)	60.4	62.14)	-2.7%

^{1) Sales figures for the prior-year period have been restated in line with the new IFRS 15 accounting standards, which came into effect on 1 January 2018.
2) Excluding the effects of IAS 19
3) Including one-off effects of CHF 7.0 million
4) Including one-off effects of CHF 6.3 million}