Half Year 2026 Galenica AG Earnings Call Transcript

Aug 6, 2026 / 12:00 PM GMT

Transcript

Key Points

Positve

Galenica Ltd (WBO:GALE) achieved strong sales growth of 7.1% to CHF2.136 billion and increased adjusted EBIT by 7.1% to just under CHF118 million in H1 2026.
Adjusted for one-off items, EBIT growth was a robust 12.6%, demonstrating strong underlying operational performance.
The company is gaining market share, particularly in prescription medicines, with its local pharmacies growing by 6.2% and outperforming the market.
The integration of LaborTeam is proceeding well, contributing 3.1% to sales growth and enabling further synergies within the network.
The home care business is experiencing strong growth, driven by the successful merger of Bixel Home Care and Life Stage Solutions and the growing demand for services like MediFill.
Galenica Ltd (WBO:GALE) is expanding its high-margin healthcare services, with fee-paying consultations up 27% and the rollout of 'Consultation Plus' across all pharmacies.
The company is well-positioned for the future liberalization of the online OTC market, with its omnichannel capabilities and Redcare joint venture ready to capitalize on the opportunity.
Management reaffirmed its 2026 guidance and medium-term targets, citing good momentum for the second half of the year.
The cost for discontinuing Bixil's pharmaceutical production came in lower than expected at CHF30 million, versus an initial estimate of CHF35-40 million.

Negative

The Swiss OTC market was flat, with a weak cold and flu season negatively impacting sales of products like Clinique and leading to an 8% sales decline in the products and brands segment.
International business faced a temporary setback due to a stock reduction of Proskendorl inventory, which will negatively affect sales growth for the current year.
Cash flow in the first half was lower than the previous year due to seasonal net working capital effects, delayed billing, and a temporary inventory buildup for the ERP switch.
Adjusted net debt increased to CHF837 million, with a leverage factor of 2.7, partly due to the higher net working capital.
The company faces regulatory headwinds, including price reductions on top-selling lab tests and a new remuneration system for artificial nutrition in home care starting in 2027.
The wholesale business underperformed the market with 4.3% growth versus 3.7% market growth, partly due to the conscious decision to close a mail-order pharmacy.
The CEO of LaborTeam has left the company, creating a leadership transition and potential uncertainty during its integration phase.
The modernization of the pharmaceutical wholesale business, including the SAP switch at the Niederglatt site, carries execution risks and will only yield efficiency gains in 2027.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GALE.S - Galenica AG
Half Year 2026 Galenica AG Earnings Call
Aug 06, 2026 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Dear analysts, members of the media and guests, a warm welcome to the Analyst and Media conference call for the first half year of 2026.

Before we start, a quick information for our English-speaking participants. You can change the language to the simultaneous English translation in the bottom right corner.

Our CEO, Mark Werner will shortly be giving you an update on the implementation of our strategy before we take a look together at the figures for the first half of the year.

As always, we'll have a Q&A session at the end.

Thank you, Julian.

Ladies and gentlemen, thank you for taking the time to join us on this call.

Let me first give you a brief review of the first half of the year

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