Galenica (GALE) H1 2025 earnings summary

Executive summary

• Achieved 5.0% sales growth and 10.9% EBIT increase in H1 2025, with significant profitability and cash flow improvements and expansion into diagnostics through the acquisition of Labora/Labor Team Group.

• Strengthened market position via innovation, efficiency gains, and expansion of the pharmacy network to 381 locations.

• Launched digital health solutions, including Prescription Manager and increased e-prescription adoption.

• Enhanced home care offering by integrating Bichsel/Bixel and Lifestage Solutions.

• Focused on talent acquisition and internal development, recognized among top recruiters.

Financial highlights

• Net sales reached CHF 1,995.4 million (+5.0% year-over-year); adjusted EBIT rose 10.9% to CHF 109.9 million, with CHF 5.4 million in positive one-off effects.

• Adjusted net profit was CHF 90.7 million (+16.8%); reported net profit CHF 88.6 million (+11.8%).

• Free cash flow improved to CHF 16.1 million (H1 2024: CHF -45.3 million), driven by strong operating results and working capital management.

• Net debt at CHF 532.9 million (1.9x adjusted EBITDA); equity ratio at 51.7%.

• Investments in tangible and intangible assets totaled CHF 27.6–29.4 million, with some deferred to H2 2025.

Outlook and guidance

• 2025 guidance: net sales growth of 3–5%, EBIT growth of 7–9% (raised from 4–6%) due to one-off effects, and dividend at least at prior year’s level.

• Acquisition of Labora/Labor Team Group not yet included in outlook as closing is pending regulatory approval.