5. Segment information
The group has two reportable segments, R&D and fee-for-service business.
Segment information for the year 2019
(thousands of €) |
R&D |
Fee-for-services |
Inter-segment elimination |
Group |
||
|---|---|---|---|---|---|---|
|
||||||
External revenue |
834,901 |
10,084 |
|
844,985 |
||
Internal revenue |
|
6,742 |
(6,742) |
– |
||
Other income |
50,905 |
– |
|
50,905 |
||
Revenues & other income |
885,806 |
16,826 |
(6,742) |
895,890 |
||
|
|
|
|
|
||
Segment result |
407,464 |
1,125 |
|
408,589 |
||
Unallocated expenses(1) |
|
|
|
(38,297) |
||
Operating profit |
|
|
|
370,292 |
||
Financial (expenses)/income |
|
|
|
(220,233) |
||
Result before tax |
|
|
|
150,060 |
||
Income taxes |
|
|
|
(214) |
||
Net profit |
|
|
|
149,845 |
||
Segment information for the year 2018
(thousands of €) |
R&D |
Fee-for-services |
Inter-segment elimination |
Group |
||
|---|---|---|---|---|---|---|
|
||||||
External revenue |
278,666 |
10,170 |
|
288,836 |
||
Internal revenue |
|
8,508 |
(8,508) |
– |
||
Other income |
29,000 |
9 |
|
29,009 |
||
Revenues & other income |
307,666 |
18,687 |
(8,508) |
317,845 |
||
|
|
|
|
|
||
Segment result |
(19,734) |
1,751 |
|
(17,983) |
||
Unallocated expenses(1) |
|
|
|
(26,824) |
||
Operating loss |
|
|
|
(44,807) |
||
Financial (expenses)/income |
|
|
|
15,598 |
||
Result before tax |
|
|
|
(29,209) |
||
Income taxes |
|
|
|
(50) |
||
Net loss |
|
|
|
(29,259) |
||
Segment assets and liabilities are not information being provided to management on a recurring basis. This information is therefore not disclosed in our segment information.
Geographical information
In 2019 our operations were mainly located in Belgium, Croatia, France and the Netherlands and our top 3 customers represented 98.8% of the revenues. Our client base in 2019 and 2018 included nine of the largest pharmaceutical companies in the world.
Following table summarizes our revenues by destination of customer:
|
Year ended 31 December |
|
|---|---|---|
(thousands of €) |
2019 |
2018 |
North America |
795,605 |
117,609 |
Europe |
49,018 |
171,113 |
Asia Pacific |
362 |
114 |
Total revenues |
844,985 |
288,836 |
Following table summarizes our revenues by major customers:
|
Year ended 31 December |
|||||
|---|---|---|---|---|---|---|
|
2019 |
2018 |
||||
|
(thousands of €) |
% |
(thousands of €) |
% |
||
|
||||||
Gilead |
|
|
|
|
||
North America(1) |
793,873 |
94% |
116,640 |
40% |
||
Europe(1) |
(4,570) |
-1% |
7,793 |
3% |
||
AbbVie |
|
|
|
|
||
Europe |
26,356 |
3% |
89,936 |
31% |
||
Novartis |
|
|
|
|
||
Europe |
19,177 |
2% |
55,218 |
19% |
||
Servier |
|
|
|
|
||
Europe |
– |
0% |
9,000 |
3% |
||
Total revenues from major customers |
834,836 |
99% |
278,587 |
96% |
||
As of 31 December 2019, we held €203 million of non-current assets (€110 million in 2018) distributed as follows:
- Belgium: €133 million (€64 million in 2018)
- France: €54 million (€36 million in 2018)
- The Netherlands: €8 million (€4 million in 2018)
- Croatia: €7 million (€5 million in 2018)
- Switzerland: €1 million (nil in 2018)
The increase in non-current assets was mainly explained by (i) an increase in property, plant & equipment explained by new acquisitions in 2019 but also by the recognition of right-of-use assets following the adoption of IFRS 16 Leases, (ii) an increase in intangible assets due to new acquisitions and capitalization of contract costs linked to the collaboration agreement with Gilead, and (iii) an increase in non-current R&D incentives receivables (see note 16).