Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GALENICA AG-REG. We currently have 4 research reports from 1 professional analysts.
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Vision of two separate listed companies now a reality
07 Apr 17
Galenica Group released FY16 results broadly in line with market consensus. The reported revenue increased by 8.6% (vs FY15: +11% yoy), largely driven by strong growth momentum in the Vifor Pharma business (+24.8% vs FY15: +36.9%; c.27% of FY16 sales). Within Vifor, the primary growth contributor was Ferinject/Injectafer (+39.3% vs FY15: +33.2%; c.30% of segment sales), led by the robust development in the US and Europe. Sales for Mircera reached CHF328.6m (vs CHF206.8m for seven months in FY15; c.28% of segment sales) on the back of patient share gains in Fresenius Medical Care’s ‘FMC’ dialysis centre. Despite a milder flu season, the Galenica Sante business performed fairly well (+3.2% vs FY15: +3.9%; c.73% of FY16 sales), underpinned by new customer acquisitions and range expansion in the services business (+3.8% vs FY15: +3.4%; c.62% of segment sales). However, growth decelerated in the Health & Beauty ‘H&B’ segment (+3.1% vs FY15: +7.7%; c.38% of segment sales) due to a challenging environment in the Swiss pharmacy market. The EBIT margin slumped by 19.8% (EBIT margin: 8.8% vs FY15: 11.9%), primarily due to the dilutive impact of the Relypsa acquisition (deal completed in September 2016). Net profit (after deduction of minority) was also down 19.1%. The board has proposed a dividend of CHF20 per share (vs FY15: CHF18) for the year. For FY17, management expects Vifor Pharma’ revenue and EBITDA (excluding the launch and ramp-up costs of Veltassa of c.CHF260m) to increase by a high single-digit and mid-to-high single-digit, respectively. Also, the dividend per share is expected to be at the same level until FY19 as FY16 (CHF20 per share). For FY20, Vifor targets revenue in excess of CHF2bn and EBITDA in a high triple-digit range. Moreover, the dividend payout ratio is targeted at 35% of net income. Note that Galenica Group has sold its entire stake in Galenica Sante through an IPO (listing on 7 April 2017). The name of Galenica Group will be changed to ‘Vifor Pharma Group’ post shareholders’ approval at the AGM in May 2017.
Vifor Pharma licenses marketing rights to CCX168 in certain territories
11 May 16
1/ Vifor Pharma licenses rights to commercialise ChemoCentryx’s orally-administered complement 5aR inhibitor CCX168 for orphan and rare renal diseases in Europe and certain other major markets. 2/ FY15 profit jumped 18.6%, including only 5.8% for Galenica.
03 Sep 15
1/ H1 sales increased by 7.9%, EBITDA by 5.6% and the group’s net profit decreased by 2.8% (+6.4% without currency exchange losses and accounting components of IAS 19). Management does not provide precise information about the impact of forex or perimeter changes. 2/ The dividing of the Vifor Pharma and Galénica Santé activities could occur in 2018 if Vifor Pharma achieves the objectives set.
Q1 with no surprises
21 Apr 17
JM released robust Q1 sales growth mainly driven by the Polish Biedronka. Total sales edged up by 9.0% to reach €3.7bn. However, in Portugal, the picture was rather mixed as Pingo Doce suffered from the highly competitive context but Recheio seemed to be less sensitive. JM managed to enhance slightly its EBITDA margin to 5.2% (vs. 5.0% in 2016). Q1 net income remains flat at €78m. Net debt increased (but still negative) due to higher gross debt and lower cash. The cash flow generation capacity was affected by the increase in both capex and working capital requirements. The dividend payment (€380m in line with our expectations) will take place in Q2 17.
Historical accounting fines pulled down Tesco's profit
12 Apr 17
Tesco released its FY2016/17 results which showed 2.7% organic sales growth yoy to £55,917m and underlying operating profit of £1,280m, i.e. a 2.3% margin. During this year, Tesco succeeded in enhancing its UK lfl growth, although rather stunted in the Q4. This has sustained its domestic business profitability, improving by 50bp to 1.8% the underlying operating margin. The latter contributed 63% vs. 53% to the group’s underlying operating profit. However, Tesco has taken a total exceptional charge of £235m in respect of the Deferred Prosecution Agreement (DPA) of £129m, the expected costs of the compensation scheme of £85m, and related costs. Thus, the net result came in at £-40m. Net debt decreased to £4.5bn following the lower gross debt and slightly better cash flow generation. However, the balance sheet remains stretched due to the ballooning pension deficit, which more than doubled to £6,621m. It is worth mentioning that the UK defined benefit deficit represents 98% of the group’s deficit. This came after the plunge in bond yields to record lows amidst the deterioration in the UK growth outlook.