Galenica (GALE) Q2 2026 earnings summary

Executive summary

• Net sales rose 7.1% year-over-year to CHF 2,136.5 million in H1 2026, with adjusted EBIT up 7.1% to CHF 117.7 million; EBIT growth was 12.6% excluding prior-year one-offs.

• Growth was driven by pharmacy, home care, and diagnostics, supported by strategic acquisitions (notably Labor Team), omni-channel expansion, and digital initiatives.

• Healthcare consultations rose 27% to 193,000, with new in-store services and 25,000 vaccinations delivered.

• Guidance for full-year 2026 and medium-term targets to 2027 reaffirmed.

• Investments continued in digitalisation, logistics, and pharmacy network expansion.

Financial highlights

• Net sales: CHF 2,136.5 million (+7.1%); adjusted EBIT: CHF 117.7 million (+7.1%); reported EBIT: CHF 88.2 million (-18.9% due to Bichsel closure costs).

• Products & Care segment sales up 11.5% to CHF 967.2 million; adjusted EBIT up 15.2% to CHF 93.3 million.

• Logistics & IT segment sales up 4.2% to CHF 1,684.9 million; adjusted EBIT down 16.2% to CHF 25.3 million.

• Free cash flow before M&A dropped to CHF -5.2 million; overall free cash flow at CHF -24.1 million, impacted by seasonal working capital build and ERP-related inventory.

• Net debt increased to CHF 837 million (2.7x EBITDA), expected to normalize to 2.2x-2.3x by year-end.

Outlook and guidance

• 2026 guidance confirmed: net sales growth expected at 5–7%, adjusted EBIT growth at 6–8%.

• Dividend strategy maintained, with payout at least at prior-year level.

• Efficiency gains expected in 2027 following ERP system switch at Niederbipp.

• Home care remuneration changes in 2027 expected to have manageable impact.