Galenica (GALE) H2 2025 earnings summary

Executive summary

• Group sales increased 5.5% year-over-year to CHF 4,136 million, driven by both Logistics & IT and Products & Care, and supported by the Labor Team acquisition.

• EBIT rose 11.3% to CHF 243.8 million, aided by special effects from lower-than-expected competition fines; adjusted EBIT was CHF 235 million.

• Strategic milestones included the Labor Team acquisition, pharmacy network expansion, and digitization initiatives.

• EBITDA grew 9.6% to CHF 294 million, while profit from continuing operations increased 3% to CHF 189 million.

• Dividend proposal for 2025 is CHF 2.50 per share, up 20% or 8.7% from the previous year, split between reserves and retained earnings.

Financial highlights

• Adjusted net profit increased 3% to CHF 189 million, with lower growth due to fewer one-off financial/tax effects.

• Gross margin improved to 27.7% of net sales, up 0.2 percentage points year-over-year.

• Operating cash flow rose to CHF 254.5 million; free cash flow after investments was CHF 188 million.

• Investments were CHF 61.1 million, at a low level due to ERP project progress.

• Personal costs as a percentage of net sales decreased to 14.8%.

Outlook and guidance

• 2026 guidance: sales growth of 5%-7%, adjusted EBIT growth of 6%-8% (9%-11% excluding 2025 special factors).

• Midterm guidance targets EBIT of CHF 270 million by 2027, with segment growth assumptions of 3%-5% per year.

• Dividend for 2026 expected at least at prior-year level.

• Planned investment volume of CHF 80-90 million over next two years, including headquarters renovation.