Galenica Reports Solid Growth Amid Challenging Market Conditions

Galenica AG announced a 2.6% increase in sales, reaching CHF 1,900 million in the first half of 2024. Both the "Products & Care" and "Logistics & IT" segments recorded growth of 3.1% and 3.0% respectively. This performance enabled Galenica to outpace the overall market.

Despite a 4.8% growth at the end of April, sales slowed in May and June due to unfavorable sales days and lower demand for seasonal products. The shift to generics and biosimilars also had a dampening effect. Nonetheless, the pharmacies achieved an 80.8% generic substitution rate, helping to curb rising healthcare costs.

Adjusted EBIT grew by 9.9%, totaling CHF 99.1 million, although growth was hindered by higher IT expenses and efficiency losses related to new ERP system implementation.

Looking forward, Galenica confirms its 2024 guidance of 3-5% sales growth and 8-11% EBIT growth, with stronger performance anticipated in the latter half of the year.