Galenica continues to grow in the 2023 financial year

   Galenica AG / Key word(s): Annual Results
   Galenica continues to grow in the 2023 financial year
   12-March-2024 / 06:45 CET/CEST
   Release of an ad hoc announcement pursuant to Art. 53 LR
   The issuer is solely responsible for the content of this
   announcement.
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   Press release
   Ad hoc announcement pursuant to Art. 53 LR

   The Galenica Group achieved strong growth with an increase in
   sales of 4.4% in the 2023 financial year and generated
   consolidated net sales of CHF 3,746.0 million. Adjusted for the
   extraordinary sales related to COVID-19 (self-tests, COVID-19
   vaccinations and rapid tests) in the prior-year period, growth
   amounted to a substantial 5.0%.

   Adjusted^1 EBIT increased by 0.4% to CHF 191.3 million, despite
   special factors in the amount of CHF 9.8 million. Without these
   special factors, adjusted^1 EBIT would have increased by 5.5% to
   CHF 201.1 million. Thanks to this solid result, the Board of
   Directors will propose to the Annual General Meeting a dividend
   at the previous year's level (CHF 2.20 per share).

Outlook for 2024

   Galenica expects sales growth of between 3% and 5% for the 2024
   financial year. Galenica expects adjusted^1 EBIT to increase by
   between 8% and 11%. Adjusted for the special factors in the 2023
   financial year in the amount of CHF 9.8 million, this results in
   a stable development of the adjusted^1 EBIT margin (ROS) at 5.4%.
   Galenica strives for strong yet sustainable dividend growth and
   plans a dividend for 2024 at least at the previous year's level.

   Detailed information in the Annual report 2023:
     *   Key figures for the Galenica Group
     *   Products & Care segment key figures
     *   Logistics & IT segment key figures

   Highlights of the 2023 financial year:
     * Around 138,000 customers made use of the healthcare services
       and consultations offered by Galenica pharmacies in 2023, 14%
       more than in the previous year.
     * Compared to the previous year, demand for vaccinations in
       Galenica pharmacies increased by 18% (excluding COVID-19
       vaccinations).
     * Together with Redcare Pharmacy, Galenica established
       Switzerland's leading online pharmacy, adding a pure only
       pharmacy to its offering.
     * After more than three years of renovation work, the Amavita
       Bahnhof Apotheke opened its new retail premises at Zurich's
       main station in November 2023.
     * With the acquisition of Padma, Verfora further expanded its
       complementary medicine offering, thereby increasing its
       overall market share in the Swiss consumer healthcare market
       to 10.3%.
     * The home care offerings in the Galenica network, in
       particular those of Lifestage Solutions, Bichsel and
       Medifilm, were linked more closely in the year under review
       and performed very successfully, with demand significantly
       higher than in the previous year.
     * Galexis actively contributed to improving security of supply
       of medicines in Switzerland through its 'Safety Stock'
       initiative.
     * The Documedis^® medical and pharmacy software was technically
       further developed in the reporting year. In 2023, over 270
       million 'Clinical Decision Support Checks' (CDS) were carried
       out on the basis of Documedis^® solutions, 145% more than in
       the previous year.

Key figures of the Galenica Group 2023:

(in million CHF)

2023

2022^2

Change

Net sales







Products & Care segment

1,635.6

1,584.0

+3.3%

Retail (B2C)

1,385.6

1,360.7

+1.8%

Local Pharmacies

1,306.9

1,286.9

+1.6%

Pharmacies at Home

78.9

74.0

+6.6%

Professionals (B2B)

256.1

228.8

+11.9%

Products & Brands

177.1

157.7

+12.3%

Services for Professionals

78.9

71.1

+11.0%

Logistics & IT segment

3,077.0

2,933.3

+4.9%

Wholesale

2,952.7

2,820.4

+4.7%

Logistics & IT Services

144.0

130.7

+10.1%





Corporate and eliminations

-966.6

-928.8


Galenica Group

3,746.0

3,588.5

+4.4%





EBIT adjusted^1




Products & Care segment^1

152.3

143.3

+6.3%

Logistics & IT segment^1

42.3

49.2

-14.2%





Corporate and eliminations

-3.3

-1.9


Galenica Group^1

191.3

190.6

+0.4%





Net profit from ongoing business activities adjusted^1

161.6

157.2

+2.8%


1 Excluding the effects of IFRS 16 and IAS 19

   2 Adjusted prior-year figures due to joint venture with Redcare
   Pharmacy (formerly Shop Apotheke Europe)

Added value for customers - offline and online

   Galenica aims to offer customers the best experience across all
   channels, anytime and anywhere - online and offline. With its
   Amavita, Sun Store and the joint venture Coop Vitality
   bricks-and-mortar pharmacy formats and associated online shops,
   the new pure online pharmacy Mediservice in a joint venture with
   Redcare Pharmacy and a comprehensive portfolio of products and
   services, Galenica offers a range of products to meet a wide
   range of customer needs - from personal advice to online
   ordering.

   In 2023, Galenica further expanded the range of advice and
   healthcare services in its pharmacies. In total, around 138,000
   consultations and healthcare services were provided in
   pharmacies, an increase of 14% over the previous year.

   Demand for vaccination services in pharmacies is also high. A
   total of 44,000 vaccine doses were administered in 2023, mainly
   against influenza and TBE, an increase of 18% (excluding COVID-19
   vaccinations). These low-threshold offers not only meet customer
   needs, but also help to curb the rising cost pressure in the
   healthcare sector. This is also recognised by other service
   providers in the healthcare system - in 2023, for example,
   further health insurers added pharmacy services to their
   supplementary models and are offering reimbursement for them.

Healthcare services and consultations at Galenica

   Galenica made further progress both offline and online in 2023.
   For example, the beta version of Amavita's online shop, which is
   based on new technology, was launched. In line with Galenica's
   Omni-Channel strategy, the online presence complements
   bricks-and-mortar points of sale and, above all, serves as a
   digital gateway to the Galenica network.

Focus 2024

   The pharmacy network is being continuously optimised and
   expanded, also through investments in the shopfitting and
   consulting concept at physical points of sale. The online shops
   of the Galenica pharmacies are undergoing technical and
   qualitative improvements by gradually switching to a new
   technological platform and expanding the online offerings.

   Strong partnerships create a broader offering and greater
   efficiency

   In order to provide its customers with the best possible online
   offering, Galenica founded a joint venture with Redcare Pharmacy
   (formerly Shop Apotheke Europe) in spring 2023. This joint
   venture combines the business activities of the specialty
   pharmacy Mediservice and shop-apotheke.ch. The result is
   Switzerland's leading online pharmacy. By partnering with Redcare
   Pharmacy, Galenica has teamed up with a strong international
   partner, enabling Galenica to build up a comprehensive,
   online-only offer.

   In the area of logistics, Galenica also took another major step
   towards efficiency and sustainability in 2023. Together with
   Planzer, Galenica founded the joint venture Health Supply, which
   will bundle all transport services already provided by Planzer
   and other transport service providers on behalf of the Galenica
   Group. This will make it possible to reduce the complexity that
   has arisen so far from working with various transport service
   providers.

Focus 2024

   Synergies will be exploited in a targeted manner in the joint
   venture Mediservice with Redcare Pharmacy to further drive
   growth. The joint venture Health Supply will in future develop,
   test and implement sustainable transport solutions, for example
   in the area of alternative propulsion systems for delivery
   vehicles. Galenica will also continue to pursue its strategy of
   connecting with strong and competent partners in the healthcare
   system, thereby creating added value for customers.

Home care offers make life easier for patients and relatives

   Galenica also expanded its offerings in the home care sector in
   2023. Also for economic reasons, service providers in the
   healthcare sector will have to ensure that patients are cared for
   at home for longer or can return home more quickly after a
   hospital stay in the coming years. This will reduce rising
   healthcare costs and improve patients' quality of life in the
   long term.

   The Home Care Coordination Service, which was set up at the start
   of 2023 by Mediservice, established itself and continued to
   develop during the financial year. The current focus is on people
   with Parkinson's disease. This service helps patients and
   relatives to organise their treatment and to procure products and
   medical aids. Galenica gained initial positive experiences with
   established partnerships in 2023: this coordination service is a
   welcome relief for patients, relatives and the caring therapy
   network.

Home care offers at Galenica


Focus 2024

   In the home care sector, the collaboration between Bichsel,
   Lifestage Solutions, Mediservice, Medifilm and Emeda will be
   further expanded so that customers can benefit fully from the
   added value and new offerings, while also attracting new
   customers. In addition, the applications and platforms customers
   are familiar with will be bundled into a central digital
   platform. As of January 2024, Galenica acquired a 33% stake in
   Farmadomo Home Care Provider SA, the leading home care
   organisation in the field of clinical nutrition and blister
   packaging of medicines in the canton of Ticino. Galenica is thus
   also significantly expanding its home care offerings in Ticino.

Sustainability as a central pillar of entrepreneurial action

   In 2023, Galenica made significant progress in achieving its
   sustainability goals. For example, the use of Clinical Decision
   Support Checks increased by 145% to an impressive 270 million in
   the reporting year. This is an important aspect in the area of
   patient safety.

   Last year, a photovoltaic system was installed on the roof of the
   distribution centre in Niederbipp, which can cover up to a third
   of the centre's electricity needs. This is an important step
   towards achieving the goals of reducing the greenhouse gas
   emissions of Galenica sites and promoting the use of renewable
   electricity sources.

Sustainability at Galenica

   Today more than ever, sustainability has become a central pillar
   of business activity. In a world of constant change, Galenica
   takes responsibility for its impact on the environment, society
   and the economy. What Galenica is doing in the area of
   sustainability and the specific successes it was able to achieve
   in 2023 can be found in the GRI Report and the Report on
   Non-Financial Matters (Art. 964a et seq. CO).

Focus 2024

   Galenica will continue to prioritise the measures it has defined
   to achieve its sustainability goals. For example, further pilot
   projects will be launched with alternative propulsion systems for
   delivery vehicles, such as hydrogen, and the necessary charging
   infrastructure for company vehicles will be set up at relevant
   locations.

Further information can be found in the 2023 Annual Report.

Media and analyst conference at 10.30 a.m.

   Galenica will host its media and analyst conference on the 2023
   annual results today, Tuesday, 12 March 2024, at 10.30 a.m.
   (Central European Time, CET).

   The conference will be held as a hybrid event. If you are unable
   to attend in person, you have the option of following the
   conference via webcast in German or English.

Live webcast (code: 3620)


Questions can also be asked via the webcast.

   The conference will be held in German. The documentation will be
   available on the website from 10 a.m. on 12 March 2024.

   The recording will be available at http://www.galenica.com after
   the conference.

   Dates for the diary
   10 April 2024: Annual General Meeting of Galenica Ltd.
   23 May 2024: Galenica Group sales update
   06 August 2024: Publication of Galenica Group half-year results
   2024

For further information, please contact:

   Media Relations:
   E-Mail: media@galenica.com
   Tel. +41 58 852 85 17 Investor Relations:
   E-Mail: investors@galenica.com
   Tel. +41 58 852 85 31

   Welcome to the Galenica network!
   Our ambition is to meet the needs of patients and customers in
   the Swiss healthcare market in a seamless, efficient and
   personalised way. To achieve this, we operate the Galenica
   network with over 20 Business Units, the strongest partners in
   the Swiss healthcare market. We offer fully integrated solutions
   both for customers and patients as well as for pharmacies,
   drugstores, medical practices, hospitals, retirement and nursing
   homes, home care providers, wholesalers, pharmaceutical
   companies, health insurance funds and other partners.
   Galenica is listed on the Swiss Stock Exchange (SIX Swiss
   Exchange, GALE, security number 36,067,446). Additional
   information concerning Galenica can be found at www.galenica.com.

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   End of Inside Information
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   Language:    English
   Company:     Galenica AG
                Untermattweg 8
                3027 Bern
                Switzerland
   Phone:       +41 058 852 81 11
   E-mail:      info@galenica.com
   Internet:    https://www.galenica.com
   ISIN:        CH0360674466
   Listed:      SIX Swiss Exchange
   EQS News ID: 1853071

   End of Announcement EQS News Service
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1853071 12-March-2024 CET/CEST