Overview statutory results of Galapagos NV
This overview only concerns the non-consolidated statutory results of Galapagos NV. These results are part of the consolidated results as discussed in the Letter from the CEO and Chairman.
|
Year ended 31 December |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Turnover |
418,495 |
503,390 |
Inventory semi-finished and finished goods : increase (decrease) |
4,414 |
1,376 |
Internally generated intangible assets |
349,508 |
392,744 |
Other operating income |
12,847 |
18,535 |
Non-recurring operating income |
19 |
- |
|
|
|
Operating income |
785,283 |
916,046 |
|
|
|
Raw materials, consumables and goods for resale |
(19,860) |
(13,058) |
Services and other goods |
(420,835) |
(500,012) |
Remuneration, social security costs and pensions |
(77,772) |
(70,360) |
Depreciation, impairment and other amounts written off on constitution costs, intangible and tangible assets |
(357,368) |
(401,835) |
Increase (-)/decrease in provisions |
(2,105) |
2,317 |
Other operating charges |
(102,149) |
(120,704) |
Non-recurring operating costs |
(36,854) |
(4,068) |
|
|
|
Operating loss |
(231,661) |
(191,674) |
|
|
|
Finance income |
135,554 |
85,765 |
Non-recurring finance income |
- |
33,471 |
Finance cost |
(60,964) |
(28,125) |
Non-recurring finance cost |
- |
(12,330) |
|
|
|
Loss before tax |
(157,071) |
(112,893) |
|
|
|
Taxes |
19,092 |
20,156 |
|
|
|
Loss for the year |
(137,980) |
(92,737) |
|
|
|
Loss brought forward |
(369,237) |
(276,499) |
|
|
|
Accumulated losses to be carried forward |
(507,217) |
(369,237) |
|
31 December |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Assets |
|
|
|
|
|
Non-current assets |
375,525 |
199,804 |
Intangible fixed assets |
18,165 |
48,290 |
Tangible fixed assets |
17,595 |
15,697 |
Financial fixed assets |
251,918 |
43,317 |
Non-current trade and other receivables |
87,847 |
92,500 |
|
|
|
Current assets |
4,318,923 |
4,920,628 |
Inventories |
52,665 |
20,361 |
Trade and other receivables |
154,704 |
209,445 |
Deferred costs |
9,755 |
8,677 |
Accrued income |
10,711 |
847 |
Cash and cash equivalents |
4,091,087 |
4,681,298 |
Total assets |
4,694,448 |
5,120,433 |
|
|
|
Equity and liabilities |
|
|
|
|
|
Equity |
2,508,640 |
2,639,924 |
Share capital and reserves |
356,112 |
354,582 |
Share premium account |
2,659,745 |
2,654,579 |
Accumulated losses |
(507,217) |
(369,237) |
|
|
|
Liabilities |
2,185,808 |
2,480,508 |
Non-current liabilities |
9,752 |
10,385 |
Provisions |
9,752 |
8,885 |
Other non-current liabilities |
- |
1,500 |
Current liabilities |
2,176,057 |
2,470,123 |
Trade and other payables |
274,599 |
223,911 |
Tax, payroll and social security liabilities |
25,642 |
16,705 |
Accrued costs |
658 |
3,100 |
Deferred income |
1,875,157 |
2,226,407 |
Total equity and liabilities |
4,694,448 |
5,120,433 |
Galapagos NV’s operating income decreased by €130.7 million in 2022, from €916.0 million in 2021 to €785.3 million in 2022. This decrease was due to a lower turnover of €84.9 million, primarily due to decreased revenue recognition of upfront payments, because of the lower increase in percentage of completion, as well as lower revenue recognition of milestone payments. There was also a decrease due to internally generated intangible assets – being capitalized R&D expenses – which contributed by €43.2 million less to our operating income than previous year. Other operating income decreased with €5.7 million and amounted to €12.8 million for the year ended 31 December 2022, including €1.8 million of grants recognized for R&D projects and €8.5 million recuperation of withholding taxes for scientists.
The operating costs of 2022 amounted to €1,016.9 million compared to €1,107.7 million in 2021.
Material purchases increased from €13.1 million in 2021 to €19.9 million in 2022.
Services and other goods decreased substantially to €420.8 million compared to €500.0 million in 2021, primarily due to decreased internal and external subcontracting for our preclinical studies and clinical trials.
Personnel costs in 2022 increased to €77.8 million compared to €70.4 million in 2021, mainly due increased severance payments. The number of employees at Galapagos NV at the end of 2022 amounted to 442 as compared to 460 at the end of 2021, excluding insourced personnel. The average number of FTE in 2022 decreased to 433, compared to 487 in 2021.
Depreciation decreased to €357.4 million in 2022, compared to €401.8 million in 2021, and related primarily to amortization of capitalized R&D expenses. Galapagos NV capitalizes its incurred R&D expenses and fully amortizes them in the same year.
Other operating charges decreased from €120.7 million in 2021 to €102.1 million in 2022 caused by a reduction in transferpricing management fees. Non-recurring operating costs consisted of impairments of intangible fixed assets related to discontinued projects.
Galapagos NV’s 2022 financial income increased to €135.6 million compared to €85.8 million in 2021, financial costs increased as well to €61.0 million compared to €28.1 million in 2021. The net exchange gain decreased from €74.0 million in 2021 to €54.9 million in 2022 and consisted mainly of non-realized currency exchange gains on U.S. dollar, while the net interest income in 2022 amounted to €10.8 million as compared to a net interest cost of €11.4 million in 2021. Financial income also included dividend income of €10.5 million. Non-recurring finance income in 2021 consisted of €33.5 million of gain on sale of subsidiaries. Non-recurring finance cost in 2021 consisted of impairment on financial assets.
Tax income recorded in 2022 of €19.1 million as compared to €20.2 million tax income in 2021, related to tax incentives for investments in intangible fixed assets.
Investments in fixed assets in 2022 amounted to €17.0 million, excluding the internally generated assets. They consisted mainly of investments in intangible assets, being a license and milestone payment and software, as well of costs for building improvements, new laboratory and IT equipment.
Non-current and current other receivables amounted to respectively €87.8 million and €82.4 million and included the receivable for tax incentives amounting to respectively €87.8 million and €14.2 million in 2022, compared to other receivables for tax incentives of €92.5 million and €6.6 million in 2021.
Galapagos NV’s cash position at the end of 2022 amounted to €4,091.1 million.
The non-consolidated annual accounts of Galapagos NV which we submit for your approval were prepared in accordance with Belgian accounting rules as well as with the legal and regulatory requirements. They show a negative result. The financial year 2022 closed with a loss of €138.0 million compared to a loss of €92.7 million in 2021. The non-consolidated annual accounts of Galapagos NV show accumulated losses of €507.2 million as at 31 December 2022; we refer to the Going concern statement for justification for the application of the valuation rules under the going concern assumption.
In 2022, Galapagos NV did not make use of financial instruments.
Following common practice, Galapagos NV has given customary representations and warranties which are capped and limited in time.