Galenica AG is a leading Swiss healthcare services and products company, headquartered in Bern. It operates across three core segments: Pharmacy Retail, Products & Brands, and Logistics & IT. With nearly 4 billion CHF in sales and ~8,000 employees, Galenica integrates pharmacy distribution (Galexis, Alloga), in-house pharmacy chains (Amavita, Sun Store), consumer health brands (Verfora), and digital health and logistics services.
📊 Mini Pitch Deck – Investment Snapshot
- Investment Thesis
Galenica is a strong, integrated Swiss health platform benefiting from stable, recurring revenues across its retail, branded products, and logistics segments. It shows consistent growth, margin improvement, and dividend potential—well positioned to capture evolving health-service trends.
- Market Opportunity
- Expansion in pharmacy services (e.g. “Consultation Plus”, telemedicine partnerships) capturing higher value per customer.
- Growing demand for consumer health products, with strong export growth (+15% for Verfora).
- Logistics & IT scale supporting pharmacies/wholesalers, competitive market share gains (growth ~5.3%).
- Financial Highlights (FY 2024)
- Sales: CHF 3.92 bn (+4.7%).
- Adjusted EBIT: CHF 211 m (+10.3%).
- Net Profit: CHF 183 m (+13.4%).
- Adjusted ROS: 5.4% (↑ from 5.1%).
- Operating Cash Flow: CHF 212 m; Free Cash Flow: CHF 61 m
- Dividend: CHF 2.30/share (+4.5%).
- Net debt/EBITDA: ~1.6×, with equity ratio at ~50.5%.
- Competitive Advantages
- Integrated model combining retail pharmacy ownership and wholesale logistics.
- Digital innovation: telemedicine (“Book a Doc”), expanded pharmacy services, upgraded ERP and IT systems.
- Strong consumer health brand exports, e.g., Perskindol’s success in Asia (+15%).
- Risks
- Regulatory impact from healthcare policy changes and price reductions (e.g. generics substitution).
- Execution risk from ongoing digital/infrastructure investments (ERP rollout).
- Dependency on Swiss healthcare market; slower economic growth could weigh on discretionary health services.
- Valuation & Outlook
- 2025 guidance: +3–5% sales growth; +4–6% adjusted EBIT increase; stable or growing dividends.
- Trades as a mid-cap healthcare/logistics hybrid with visible cash-flow and dividend growth potential.
- Balanced profile with defensive retail base and scalability via logistics and digital services.
🚀 Investment Summary
Galenica offers a compelling Swiss mid-cap investment with a unique integrated model—combining pharmacy retail, branded consumer health, and robust logistics/IT. The strong financial trajectory, digital innovation, and healthcare-tailored expansion support a stable dividend, moderate growth, and resilient earnings profile.