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Results of the Galenica Group 2016
Galenica again posts strong results in 2016
Consolidated net sales grew by 8.6% to CHF 4,118.4 million. On a comparable basis, excluding the negative effects due to IAS 19 and the acquisition of Relypsa, EBITDA rose by 11.4% and EBIT by 10.2%. Net profit before deduction of minority interests was up by 13.5% and net profit after deduction of minority interests by 12.9%.
The acquisition of US company Relypsa had a negative impact on the Group’s results and reduced EBITDA by CHF 103.4 million, EBIT by CHF 129.4 million and net profit before and after deduction of minority interests by CHF 91.6 million. Accordingly, EBITDA fell by 9.0% to CHF 489.1 million, EBIT by 19.8% to CHF 361.5 million, net profit before deduction of minority interests by 12.5% to CHF 323.8 million and net profit after deduction of minority interests by 19.1% to CHF 243.6 million.
The Galenica Group confirms its intention to list Galenica Santé on the SIX Swiss Exchange. Galenica has today issued two separate press releases: one on the strategy of the Galenica Group and one on the planned IPO of Galenica Santé.
Vifor Pharma: breaking the billion-franc sales mark
Vifor Pharma increased net sales by 24.8% to CHF 1,167.0 million. This strong growth took company sales over the one-billion-franc mark for the first time in 2016. CHF 349.5 million (+39.3%) of total sales came from Vifor Pharma affiliates and partners from sales of the iron deficiency product Ferinject®/Injectafer®. EBIT, excluding the US pharma company Relypsa acquired in 2016, rose by 14.3% to CHF 374.6 million. Taking into account the effects of the Relypsa acquisition, EBIT was down 25.2% to CHF 245.2 million.
As a result of the acquisition of Relypsa to intensify the global business, Vifor Pharma now has a fully integrated commercial sales organisation in the key US market. Further priorities for Vifor Pharma in 2017 include expanding the iron market, especially in the USA, and reinforcing Vifor Fresenius Medical Care Renal Pharma as a leading player in nephrology in cooperation with partner Fresenius Medical Care. With the intended division of the Galenica Group, Vifor Pharma will establish itself in 2017 as an independent global pharma company in selected therapeutic areas.
Guidance Vifor Pharma Group
At constant exchange rates Vifor Pharma net sales are expected to grow by high single digit in 2017.
Excluding the costs to support the launch and ramp-up of Veltassa® of approximately CHF 260 million, EBITDA is also expected to increase at a mid to high single digit rate. In the medium term net sales are expected to exceed CHF 2 billion in 2020 and EBITDA is expected to reach a high triple-digit level in 2020.
From 2017 to 2019 the dividend is expected to be at the same level as for 2016. From 2020 onwards the payout ratio is targeted at 35% of net income.
Galenica Santé: further margin improvements
Galenica Santé concentrated its strengths in 2016 and increased sales by 3.2% to CHF 3,008.9 million. All Business sectors performed well in a challenging market, despite pressure on drug prices, consumer tourism outside Switzerland and a relatively weak flu season. EBIT of CHF 136.0 million (+6.2%) once again exceeded growth in sales.
One of Galenica Santé’s central objectives is to increase efficiency. To this end, cooperation both within and between the three Business sectors will be further promoted and common processes more closely coordinated.
The guidance from Galenica Santé is included in the separate press release on the planned IPO of Galenica Santé issued today.
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