Galenica (GALE) H2 2023 earnings summary

Executive summary

• Net sales rose 4.4% YoY to CHF 3,746m; adjusted EBIT was CHF 191m, or CHF 201m excluding CHF 9.8m in one-off items, up 5.5%.

• Progress included growth across retail, products and wholesale, alongside a strategic Redcare Pharmacy joint venture and investment in customer-facing services and logistics.

Financial highlights

• Net sales increased to CHF 3,746m from CHF 3,588m; growth was 4.4% reported and 3.3% in H2 2023.

• Adjusted EBIT was CHF 191m, including CHF 9.8m in one-off items; excluding these items, EBIT was CHF 201m, up 5.5% YoY.

• Adjusted free cash flow before M&A was CHF 79.8m versus CHF 94.4m; free cash flow was CHF 49.3m versus CHF 57.9m.

Outlook and guidance

• FY 2024 net sales growth guidance: 3%–5%; adjusted EBIT growth guidance: 8%–11%, excluding IAS 19 and IFRS 16 effects.

• FY 2024 dividend expected to be at least at the prior-year level.