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23.05.2024 06:46:19 - dpa-AFX: EQS-Adhoc: Galenica on track with sales growth (english)
Galenica on track with sales growth
2024 outlook confirmed
Net sales of the Galenica Group January-April 2024:
(in million CHF)
Apr 2024
Apr 2023
Change
Products & Care segment
542.6
519.1
+4.5%
Retail (B2C)
455.9
437.8
+4.2%
Local Pharmacies
430.2
412.5
+4.3%
Pharmacies at Home
25.8
25.3
+2.1%
Professionals (B2B)
91.2
85.2
+7.1%
Products & Brands
63.8
60.7
+5.2%
Services for Professionals
27.4
24.5
+11.7%
Logistics & IT segment
1,036.1
981.1
+5.6%
Wholesale
991.6
940.5
+5.4%
Logistics & IT Services
52.2
46.8
+11.6%
Corporate and eliminations
-323.2
-302.2
Galenica Group
1,255.5
1,198.0
+4.8%
1 Adjusted, excluding the effects of IFRS 16 and IAS 19
"PRODUCTS & CARE" SEGMENT
"LOGISTICS & IT" SEGMENT
For further information, please contact:
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1908731 23-May-2024 CET/CEST
Galenica AG / Key word(s): Sales Result
Galenica on track with sales growth
23-May-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.
____________________________________________________________
Press release Ad hoc announcement pursuant to Art. 53 LR
The Galenica Group made a good start to the new year with sales growth of 4.8% to CHF 1,255.5 million in the first four months of 2024. All Service Units performed well and contributed to the good sales performance.
The sales growth is based on a positive development of the pharmaceutical market with growth of 4.0% (IQVIA, Pharmaceutical Market Switzerland, YTD April 2024). Compared to the prior-year period, the first four months of 2024 included an additional day of sales, with an estimated positive impact of around 1% on sales growth. Significantly increased sales of generics and biosimilars dampened growth. This development was driven by the measures for the promotion of generics and biosimilars that entered into force on 1 January 2024, including an increase in the deductible if patients prefer a more expensive original medicine. Galenica pharmacies increased the generic substitution rate from 75.2% at the end of 2023 to 80.5% in the first four months of 2024, thus making a significant contribution to curbing rising healthcare costs.
2024 outlook confirmed
Galenica confirms its outlook for the 2024 financial year with sales growth of between 3% and 5%, EBIT^1 growth of between 8% and 11% and a dividend at least equal to the previous year's level.
Net sales of the Galenica Group January-April 2024:
(in million CHF)
Apr 2024
Apr 2023
Change
Products & Care segment
542.6
519.1
+4.5%
Retail (B2C)
455.9
437.8
+4.2%
Local Pharmacies
430.2
412.5
+4.3%
Pharmacies at Home
25.8
25.3
+2.1%
Professionals (B2B)
91.2
85.2
+7.1%
Products & Brands
63.8
60.7
+5.2%
Services for Professionals
27.4
24.5
+11.7%
Logistics & IT segment
1,036.1
981.1
+5.6%
Wholesale
991.6
940.5
+5.4%
Logistics & IT Services
52.2
46.8
+11.6%
Corporate and eliminations
-323.2
-302.2
Galenica Group
1,255.5
1,198.0
+4.8%
1 Adjusted, excluding the effects of IFRS 16 and IAS 19
"PRODUCTS & CARE" SEGMENT
The "Products & Care" segment generated net sales of CHF 542.6 million (+4.5%) in the first four months of the 2024 financial year. Of this, CHF 455.9 million (+4.2%) was attributable to the "Retail" business area (B2C), with the "Local Pharmacies" sector contributing CHF 430.2 million (+4.3%, excluding Coop Vitality) and the "Pharmacies at Home" sector contributing CHF 25.8 million (+2.1%, excluding Mediservice).
The "Professionals" (B2B) business area increased net sales to CHF 91.2 million (+7.1%), with the "Products & Brands" sector contributing CHF 63.8 million (+5.2%) and the "Services for Professionals" sector contributing CHF 27.4 million (+11.7%).
"Retail" business area (B2C)
* The pharmacy network (excluding Coop Vitality) continued to
develop dynamically since the beginning of the year: five new
pharmacies were acquired, one new pharmacy was opened and one
pharmacy was closed. The expansion effect on sales growth in
the "Local Pharmacies" sector therefore amounted to +1.0%.
* Adjusted for this expansion effect, the Galenica pharmacies
grew organically by +3.3%, thanks to high demand for
medication sales and slightly higher demand for the rest of
the range.
* The "Pharmacies at Home" sector grew by a pleasing 2.1%
despite various adjustments of the offerings. The growth
drivers were Bichsel Homecare in the clinical nutrition at
home business and the Amavita and Sun Store web shops.
Compared to the same period last year, demand for
vaccinations in Galenica pharmacies increased by 43%
(excluding COVID-19 vaccinations).
* Around 62,000 customers made use of the healthcare services
and advice offered by Galenica pharmacies in the first four
months of 2024, an increase of 31% compared to the prior-year
period.
By way of comparison:
* Drug sales from bricks-and-mortar pharmacies in Switzerland
(prescription (Rx) and OTC products) grew by 3.7% in the
reporting period (IQVIA, Pharmaceutical Market Switzerland,
YTD April 2024).
* Sales of medications from mail-order pharmacies in
Switzerland (prescription (Rx) and OTC products) increased
slightly year on year by +0.4% (IQVIA, Pharmaceutical Market
Switzerland, YTD April 2024).
* The non-medications segment of the consumer healthcare market
developed in the reporting period slightly positive with
+1.1% (IQVIA, Consumer Health Market Switzerland, YTD April
2024, Nutrition, Personal Care, Patient Care, excluding
COVID-19 self-tests, excluding OTC).
"Professionals" business area (B2B)
* Verfora continued to grow in the first four months and was
able to expand its market position. Organic growth in the
"Products & Brands" sector, excluding the expansion effect
(+1.8%) due to the acquisition of Padma in 2023, amounted to
a pleasing 3.4%.
* Verfora's export business developed very positively with
growth of 19.5%. This pleasing result was driven by higher
demand for Verfora products, such as Perskindol® in Asia, as
well as earlier product deliveries abroad compared to the
previous year.
* Due to destocking in the market, Verfora's Swiss business
declined slightly in organic terms by -0.5%. By contrast,
market sales of Verfora products in pharmacies and drugstores
grew faster than the market as a whole at 6.9% (IQVIA,
Consumer Health Market Switzerland, YTD April 2024), enabling
further market share gains.
* Growth drivers in the "Services for Professionals" sector
(+11.7%) were once again Lifestage Solutions and Medifilm in
the business with nursing homes and home care organisations.
By way of comparison:
* The consumer healthcare market grew by 1.9% year on year
(IQVIA, Consumer Health Market Switzerland, YTD April 2024,
excluding COVID-19 self-tests).
"LOGISTICS & IT" SEGMENT
The "Logistics & IT" segment achieved net sales of CHF 1,036.1 million (+5.6%) in the first four months of the 2024 financial year. Of this, CHF 991.6 million (+5.4%) was attributable to the "Wholesale" sector and CHF 52.2 million (+11.6%) to the "Logistics & IT Services" sector.
"Wholesale" sector
* The pharmacy customer segment recorded growth of 4.5% and was
thus above market growth.
* At 9.4%, the highest growth was achieved in the physicians
segment, which enabled market shares to be gained.
By way of comparison:
* The overall pharmaceutical market grew by 4.0% (IQVIA,
Pharmaceutical Market Switzerland, YTD April 2024).
* The physicians segment grew by 7.0% (IQVIA, Pharmaceutical
Market Switzerland, YTD April 2024).
* The pharmacy segment grew by 3.4% (IQVIA, Pharmaceutical
Market Switzerland, YTD April 2024).
"Logistics & IT Services" sector
* Alloga further expanded its business in the first quarter. In
addition, all customers were migrated to the new ERP
solution, thus completing the project.
* HCI Solutions also performed well. As of the end of April,
around114 million CDS checks had been performed (+23%), an
important contribution to patient safety.
Additional information on sales figures and further information can be found in the sales presentation.
Dates for the diary 6 August 2024 Galenica Group half-year results 2024 24 October 2024 Galenica Group sales update 23 January 2025 2024 sales of the Galenica Group
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: 1908731
End of Announcement EQS News Service
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1908731 23-May-2024 CET/CEST
