Galenica (GALE) H2 2024 earnings summary

Executive summary

• Net sales reached CHF 3,921.1 million in 2024, up 4.7% year-over-year, with adjusted EBIT of CHF 211.0 million, a 10.3% increase.

• Adjusted net profit from continuing operations rose 13.4% to CHF 183.2 million, with EPS at CHF 3.67 (adjusted).

• The group operates over 500 pharmacies, expanded its network by 10 locations to 376, and reinforced omni-channel and homecare offerings.

• Strategic expansion continued through acquisitions, partnerships, and digital transformation, including the launch of digital Prescription Manager.

• Sustainability initiatives advanced, with 100% renewable electricity sourcing and top 2% global ESG risk ranking.

Financial highlights

• Net profit rose to CHF 183.2 million (+13.4%), with adjusted EBIT margin and net profit margin both improving year-over-year.

• Dividend per share proposed at CHF 2.30, up 4.5%, with a payout ratio of 62.8%.

• Gross margin remained stable; operating cash flow increased to CHF 224.7 million.

• Investments in tangible and intangible assets totaled CHF 72.8 million and CHF 36.7 million, respectively.

• Net debt/EBITDA adjusted at 1.6x; equity increased to CHF 1,552 million.

Outlook and guidance

• 2025 guidance: net sales growth of 3–5%, adjusted EBIT up 4–6%, and dividend at least at prior-year level.

• Mid-term: net sales CAGR of 3–5%, ROS targets of >9.5% (Products & Care) and up to 2% (Logistics & IT) by 2027.

• Market growth expected at 3–5% for pharmacies and physicians, with hospital channel outpacing.

• Continued investments in digital, omni-channel, and sustainability initiatives.