Overview statutory results of Galapagos NV
This overview only concerns an abbreviated version of 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. The complete version of the statutory accounts of Galapagos NV will be filed with the National Bank of Belgium. The statutory auditor’s report contains an unqualified opinion on the statutory accounts of Galapagos NV.
|
Year ended 31 December |
|
|---|---|---|
(thousands of €) |
2023 |
2022 |
Turnover |
628,899 |
418,495 |
Inventory semi-finished and finished goods : increase (decrease) |
6,808 |
4,414 |
Internally generated intangible assets |
352,580 |
349,508 |
Other operating income |
16,103 |
12,847 |
Non-recurring operating income |
547 |
19 |
|
|
|
Operating income |
1,004,937 |
785,283 |
|
|
|
Raw materials, consumables and goods for resale |
(28,718) |
(19,860) |
Services and other goods |
(397,124) |
(420,835) |
Remuneration, social security costs and pensions |
(73,556) |
(77,772) |
Depreciation, impairment and other amounts written off on constitution costs, intangible and tangible assets |
(360,512) |
(357,368) |
Increase in provisions |
(4,220) |
(2,105) |
Other operating charges |
(70,785) |
(102,149) |
Non-recurring operating costs |
(1,037) |
(36,854) |
|
|
|
Operating profit/loss (-) |
68,985 |
(231,661) |
|
|
|
Finance income |
213,501 |
135,554 |
Finance cost |
(27,417) |
(60,964) |
Non-recurring finance cost |
(10,069) |
- |
|
|
|
Profit/loss (-) before tax |
245,000 |
(157,071) |
|
|
|
Taxes |
26,292 |
19,092 |
|
|
|
Profit/loss (-) for the year |
271,292 |
(137,980) |
|
|
|
Loss brought forward |
(507,217) |
(369,237) |
|
|
|
Accumulated losses to be carried forward |
(235,924) |
(507,217) |
|
31 December |
|
|---|---|---|
(thousands of €) |
2023 |
2022 |
Assets |
|
|
|
|
|
Non-current assets |
464,865 |
375,525 |
Intangible fixed assets |
58,349 |
18,165 |
Tangible fixed assets |
16,025 |
17,595 |
Financial fixed assets |
268,400 |
251,918 |
Non-current trade and other receivables |
122,091 |
87,847 |
|
|
|
Current assets |
3,836,396 |
4,318,923 |
Inventories |
73,978 |
52,665 |
Trade and other receivables |
91,066 |
154,704 |
Deferred costs |
10,889 |
9,755 |
Accrued income |
14,651 |
10,711 |
Cash and cash equivalents |
3,645,812 |
4,091,087 |
Total assets |
4,301,261 |
4,694,448 |
|
|
|
Equity and liabilities |
|
|
|
|
|
Equity |
2,781,703 |
2,508,640 |
Share capital and reserves |
356,445 |
356,112 |
Share premium account |
2,661,182 |
2,659,745 |
Accumulated losses |
(235,924) |
(507,217) |
|
|
|
Liabilities |
1,519,558 |
2,185,808 |
Non-current liabilities |
13,972 |
9,752 |
Provisions |
13,972 |
9,752 |
Current liabilities |
1,505,586 |
2,176,057 |
Trade and other payables |
178,117 |
274,599 |
Tax, payroll and social security liabilities |
23,758 |
25,642 |
Accrued costs |
538 |
658 |
Deferred income |
1,303,173 |
1,875,157 |
Total equity and liabilities |
4,301,261 |
4,694,448 |
Galapagos NV’s operating income increased by €219.6 million in 2023, from €785.3 million in 2022 to €1,004.9 million in 2023. This increase was due to a higher turnover, of €210.4 million, mainly recognition of upfront payments. This increase was explained by a substantial decrease in our assessment of the remaining costs to complete the filgotinib development following the recent transfer of our entire Jyseleca® business to Alfasigma, including the transfer of the remaining development performance obligation after closing of the transaction. As a result, there was a substantial increase of the percentage of completion of our performance obligation and a positive catch-up released to revenues.
There was also an increase due to internally generated intangible assets – being capitalized R&D expenses – which contributed by €3.1 million more to our operating income than previous year. Other operating income increased with €3.3 million and amounted to €16.1 million for the year ended 31 December 2023, including €6.6 million of grants recognized for R&D projects and €7.8 million recuperation of withholding taxes for scientists.
The operating costs of 2023 amounted to €935.9 million compared to €1,016.9 million in 2022.
Material purchases increased from €19.9 million in 2022 to €28.7 million in 2023.
Services and other goods decreased substantially to €397.1 million compared to €420.8 million in 2022, primarily due to decreased external subcontracting for our preclinical studies and clinical trials.
Personnel costs in 2023 decreased to €73.6 million compared to €77.8 million in 2022. The number of employees at Galapagos NV at the end of 2023 amounted to 367 as compared to 442 at the end of 2022, excluding insourced personnel. The average number of FTE in 2023 decreased to 369, compared to 433 in 2022.
Depreciation increased to €360.5 million in 2023, compared to €357.4 million in 2022, 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 €102.1 million in 2022 to €70.8 million in 2023 caused by a reduction in transferpricing management fees. Non-recurring operating costs in 2022 consisted of impairments of intangible fixed assets related to discontinued projects.
Galapagos NV’s 2023 financial income increased to €213.5 million compared to €135.6 million in 2022, financial costs decreased to €27.4 million compared to €61.0 million in 2022. Non-recurring finance cost in 2023 consisted of impairment on financial assets. The net exchange gain decreased from €54.9 million in 2022 to a net exchange loss of €29.3 million in 2023 and consisted mainly of non-realized currency exchange losses on U.S. dollar. The net interest income in 2023 amounted to €97.9 million as compared to a net interest income of €10.8 million in 2022. Financial income also included dividend income of €109.5 million.
Tax income recorded in 2023 of €26.3 million as compared to €19.1 million tax income in 2022, related to tax incentives for investments in intangible fixed assets.
Investments in fixed assets in 2023 amounted to €47.6 million, excluding the internally generated assets. They consisted mainly of investments in intangible assets, being a license payment and software, as well of costs for building improvements, new laboratory and IT equipment.
Non-current and current other receivables amounted to respectively €122.1 million and €64.1 million and included the receivable for tax incentives amounting to respectively €117.4 million and €13.8 million in 2023, compared to other receivables for tax incentives of €87.8 million and €14.2 million in 2022.
Galapagos NV’s cash position at the end of 2023 amounted to €3,645.8 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 positive result. The financial year 2023 closed with a profit of €271.3 million compared to a loss of €138.0 million in 2022.
The non-consolidated annual accounts of Galapagos NV show accumulated losses of €235.9 million as at 31 December 2023; we refer to the Going concern statement for justification for the application of the valuation rules under the going concern assumption.
In 2023, 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.