Galenica (GALE) investor relations material

Executive summary

• Net sales rose 7.1% year-over-year to CHF 2,136.5 million in H1 2026, with adjusted EBIT up 7.1% to CHF 117.7 million; adjusted EBIT growth was 12.6% excluding prior-year one-offs.

• Growth was driven by strong pharmacy, home care, and diagnostics performance, supported by strategic acquisitions such as Labor Team and expansion in omni-channel pharmacy.

• Continued investment in digitalisation, automation, and pharmacy network expansion, including ERP upgrades and prescription manager adoption.

• Integration of Labor Team and Bichsel Home Care progressing, with leadership transition and portfolio optimization underway.

• Adjusted net profit from continuing operations grew 1.3% to CHF 91.9 million; reported net profit dropped 24.1% to CHF 67.3 million due to Bichsel closure costs.

Financial highlights

• Net sales: CHF 2,136.5 million (+7.1% year-over-year); adjusted EBIT: CHF 117.7 million (+7.1%); reported EBIT: CHF 88.2 million (-18.9%).

• Products & Care segment sales up 11.5% to CHF 967.2 million; adjusted EBIT up 15.2% to CHF 93.3 million.

• Logistics & IT segment sales up 4.2% to CHF 1,684.9 million; adjusted EBIT down 16.2% to CHF 25.3 million.

• Free cash flow before M&A dropped to CHF -5.2 million due to seasonal working capital build; overall free cash flow at CHF -24.1 million.

• Net debt rose to CHF 837 million (2.7x EBITDA), expected to normalize by year-end.

Outlook and guidance

• 2026 outlook confirmed: expected net sales growth of 5–7% and adjusted EBIT growth of 6–8%.

• Dividend planned at least at previous year's level.

• Efficiency gains expected in 2027 from ERP system switch at Niederbipp and ongoing wholesale modernization.

• One-off special costs for Bichsel's production closure to be around CHF 30 million, lower than previously expected and excluded from adjusted EBIT.