Following a solid increase in sales of 2.6% in the first half of 2024, Galenica again posted significantly stronger growth of +6.7% in the second half of 2024. Market share gains in the wholesale business with doctors and pharmacies contributed significantly to the increase in sales. In addition to acquisitions, the main growth driver in the pharmacy business was strong organic growth in sales of prescription-only medications. In addition, the second half of the year had two more sales days than in the prior-year period, which boosted growth in this half-year period by an estimated +1.6%. Due to the leap year, 2024 as a whole had one more sales day than in the previous year, which corresponds to an additional growth effect of around +0.4%.

By contrast, a mild flu outbreak and a low occurrence of colds in the fourth quarter of 2024 weakened sales growth, particularly in the “Products & Brands” sector. Significant additional sales of generics and biosimilars also continued to dampen growth. The generics substitution rate of Galenica pharmacies increased by 4.0% on average in 2024 to a high 79.2% (75.2% at the end of December 2023).

Guidance for 2024 annual results confirmed

Galenica confirms its guidance for the 2024 annual results projecting EBIT¹ growth between 8% and 11% and a dividend at least at the previous year’s level.

Net sales of the Galenica Group January – December 2024

¹ Excluding the effects of IFRS 16 and IAS 19

PRODUCTS & CARE SEGMENT

The “Products & Care” segment achieved net sales of CHF 1,700.2 million (+3.9%) in the 2024 financial year. Of this, CHF 1,442.0 million (+4.1%) was attributable to “Retail” (B2C), with “Local Pharmacies” contributing CHF 1,365.1 million (+4.4%, excluding Coop Vitality) and “Pharmacies at Home” accounting for CHF 77.3 million (-2.1%, excluding Mediservice).

“Professionals” (B2B) increased sales to CHF 268.2 million (+4.7%), with “Products & Brands” contributing CHF 183.4 million (+3.5%) and “Services for Professionals” CHF 84.8 million (+7.5%).

Retail (B2C)

• The pharmacy network (excluding Coop Vitality Coop) continued to evolve dynamically: Twelve pharmacies were acquired, two new pharmacies were opened and four were closed or merged with other locations. The expansion effect on sales growth in “Local Pharmacies” therefore amounted to +1.7%.
• Adjusted for this expansion effect, Galenica pharmacies grew organically by 2.7% thanks to high demand for prescription-only medications.
• Compared to the previous year, demand for vaccinations in Galenica pharmacies increased by 20% (excluding COVID-19 vaccinations).
• Around 193,000 customers made use of the healthcare services and advice offered by Galenica pharmacies in 2024, 39% more than in the previous year.
• The “Pharmacies at Home” sector experienced a slight decline due to the streamlining of various services. The largest business, “Bichsel HomeCare”, continued to grow steadily.

By way of comparison

• Sales of medications from bricks-and-mortar pharmacies in Switzerland (prescription-only [Rx] and OTC products) grew by 3.5% in the reporting period (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
• Sales of medications from mail-order pharmacies in Switzerland (prescription-only [Rx] and OTC products) declined year-on-year by -2.9% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
• The non-drugs segment of the Consumer Healthcare market also contracted by -0.8% in the period under review (IQVIA, Consumer Health Market Switzerland, YTD December 2024, nutrition, personal care, patient care, excluding OTC).

Professionals (B2B)

• Verfora continued to grow in 2024 and expanded its market position. Organic growth in “Products & Brands”, excluding the expansion effect (+0.7%) attributable to the acquisition of Padma in 2023, amounted to 2.8%.
• Verfora’s export business showed very positive organic growth, with an increase of 15.1%. This pleasing result was driven by higher demand for Verfora products such as Perskindol® in Asia, and earlier product deliveries abroad compared to the previous year.
• Due to a reduction in inventories in the market combined with a mild flu outbreak in the fourth quarter of 2024, Verfora’s Swiss business saw a slight organic decline of -0.2%. At 4.2%, sales of Verfora products in the pharmacy and drugstore market grew faster than the overall market (IQVIA, Consumer Health Market Switzerland, YTD December 2024), enabling further market share to be gained.
• The growth drivers in “Services for Professionals” (+7.5%) were once again Lifestage Solutions, and Medifilm in the business with care homes and home care organisations.

By way of comparison

• The consumer healthcare market grew by 1.1% year-on-year (IQVIA, Consumer Health Market Switzerland, YTD December 2024).
   

LOGISTICS & IT SEGMENT

The “Logistics & IT” segment achieved net sales of CHF 3,240.7 million (+5.3%) in the 2024 financial year.
Of this, CHF 3,104.5 million (+5.1%) was attributable to “Wholesale” and CHF 157.2 million (+9.2%) to “Logistics &
IT Services”.

Highlights

• The pharmacy customer segment grew by 4.0%, outperforming the market.
• At 7.8%, the greatest growth was achieved in the physicians segment, which enabled market share to be gained.
• HCI Solutions also performed well. By the end of December, around 369 million CDS checks had been carried out (+33%), an important contribution to patient safety.

By way of comparison

• The overall pharmaceutical market grew by 3.5% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
• The physicians segment grew by 5.7% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).
• The pharmacy segment grew by 2.9% (IQVIA, Pharmaceutical Market Switzerland, YTD December 2024).

Additional information on sales figures and further information can be found in our sales presentation.