Galenica falls around 4% after 'underwhelming' results

Galenica AG

06/08/2024 10:19

** Shares in Galenica  GALE.S  fall around 4% after the
Swiss healthcare company reported "underwhelming" H1 results,
which make the current guidance more difficult to reach
according to analysts
    ** "The results were underwhelming", said Research Partners
analyst Urs Kunz, citing negative growth in May/June, partially
explained by fewer sales days 
    ** Galenica reported an adjusted EBIT increase of 9.9% to
CHF 99.1 million ($115.9 million), or minus 0.9% from the year
prior if adjusted for special factors, missing consensus
    ** "At least their guidance for full year 2024 is unchanged.
So, they expect a good H2 2024", Kunz adds
    ** Gian Marco Werro of Zuercher Kantonalbank says "The
future targeted growth rates and the increase in profitability
are very ambitious in view of the rising personnel costs and OTC
liberalisation (which is expected by Galenica from 2027E
onwards)"
    ** Deutsche Bank says there might be slight consensus
earnings revisions as the higher end of Galenica's guidance
looks too ambitious now
   ** Galenica also announced that long-standing CFO Felix
Burkhard would leave the company at the end of 2024, with Julian
Fiessinger to succeed him in 2025

($1 = 0.8553 Swiss francs)

 (Reporting by Marleen Kaesebier)
 ((Marleen.kaesebier@thomsonreuters.com))