Galenica (GALE) H2 2025 earnings summary

Executive summary

• Net sales increased by 5.5% to CHF 4,136 million in 2025, driven by organic growth and the acquisition of Labor Team.

• EBIT rose 11.3% to CHF 243.8 million, supported by special effects and segment contributions; adjusted EBIT was CHF 235 million.

• Adjusted net profit increased 3% to CHF 189 million, while net profit for the year was CHF 101.6 million due to higher operating and financial expenses.

• Strategic milestones included the Labor Team acquisition, ERP upgrades, and expansion of pharmacy and diagnostics networks.

• Dividend proposal for 2025 is CHF 2.50 per share, up 8.7% year-over-year.

Financial highlights

• EBIT margin (ROS) reached 5.7%, or 5.5% adjusted for special effects; gross margin improved by 0.2 percentage points to 27.7%.

• Products & Care segment margin increased to 9.6%, while Logistics & IT margin was stable or improved to 1.9%.

• Personnel cost ratio in Products & Care fell by 0.4% to 14.8%.

• Investments in tangible and intangible assets totaled CHF 61.1 million, with CAPEX expected at CHF 80–90 million in coming years.

• Free cash flow after investments was CHF 188 million; operating cash flow rose to CHF 254.5 million.

Outlook and guidance

• 2026 guidance: sales growth of 5–7%, adjusted EBIT growth of 6–8%.

• Midterm: EBIT margin in Logistics & IT expected to remain stable until 2027, with efficiency gains realized in 2028; EBIT target of CHF 270 million by 2027.

• Products & Care segment targets EBIT margin above 10% post-Labor Team integration.

• Dividend for 2026 expected at least at prior-year level; stable dividend policy.

• Strategic focus remains on sustainable, profitable growth and market leadership.