Galenica AG

Galenica reported first-half 2026 sales of CHF 2.136 billion, up 7.1% year over year, and adjusted EBIT of just under CHF 118 million, also up 7.1%. On an adjusted basis excluding prior-year one-off items, EBIT growth was 12.6%. The pharmaceutical market grew 3.7% in the first half, with brick-and-mortar pharmacy up 5.4%; Galenica said its Products & Care segment grew 11.5% and Logistics & IT 4.2%, and Labor Team contributed 3.1 percentage points to sales growth. Management confirmed full-year 2026 guidance for consolidated net sales growth of 5.7% and EBIT growth of 6% to 8%, and it reaffirmed a stable dividend strategy with the dividend at least at the prior-year level. It also said Bichsel-related one-off costs were about CHF 30 million, lower than the CHF 35 million to CHF 40 million originally expected, and year-end net debt coverage is planned at 2.2 to 2.3.

Marc Werner framed the half year as very strong and repeatedly emphasized execution, market share gains, and the benefits of Galenica’s integrated model. He highlighted three priorities: expanding the omnichannel pharmacy offer, simplifying and growing homecare, and further integrating Labor Team and diagnostics into the network. His tone was confident but practical, stressing that the group is on track with its 2026 and medium-term 2027 guidance while continuing to invest in digital tools, pharmacy services, and operational efficiency.

Julian Fiessinger focused on the numbers behind the results and guidance. He said the company’s sales growth was 7.1%, adjusted EBIT was just under CHF 118 million, and adjusted EBIT growth would have been 12.6% excluding the prior-year one-off effect of CHF 5.4 million. He noted Products & Care profitability improved from 9.3% to 9.6% due to a higher gross margin from Labor Team and better staff cost efficiency in pharmacies, while Logistics & IT profitability was flat at 1.5%. On the balance sheet, he said adjusted net debt rose to CHF 837 million because of seasonal working capital, with debt coverage expected to return to 2.2 to 2.3 at year-end; he also said Bichsel restructuring costs are around CHF 30 million and that full-year capex is estimated at CHF 80 million to CHF 90 million.

Analysts pressed for more detail on Labor Team, Bichsel, pricing, wholesale physician growth, and the EBIT bridge between reported and adjusted figures. Management said Labor Team is developing well, but it did not quantify sales because the business was not previously part of the group; it also said the CEO change at Labor Team was a normal development and not related to business issues. On Bichsel, management said the CHF 30.4 million of one-offs were mainly readjustments and stock taking, with some minor costs still expected in the second half, and that the full-year total should be around CHF 30 million or slightly less. Management also said mandatory price reductions are a recurring normalization effect of roughly 1% to 2% per year and that wholesale physician growth lagged partly because the company deliberately closed part of its mail-order pharmacy business.