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 December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Turnover |
303,425 |
628,899 |
Inventory semi-finished and finished goods: increase (decrease) |
(12,598) |
6,808 |
Internally generated intangible assets |
265,376 |
352,580 |
Other operating income |
39,918 |
16,103 |
Non-recurring operating income |
- |
547 |
|
|
|
Operating income |
596,121 |
1,004,937 |
|
|
|
Raw materials, consumables and goods for resale |
(46,408) |
(28,718) |
Services and other goods |
(334,588) |
(397,124) |
Remuneration, social security costs and pensions |
(57,873) |
(73,556) |
Depreciation, impairment and other amounts written off on constitution costs, intangible and tangible assets |
(283,475) |
(360,512) |
Impairment on inventories, on orders in progress and trade receivables |
(10,600) |
- |
Increase in provisions |
(3,568) |
(4,220) |
Other operating charges |
(27,141) |
(70,785) |
Non-recurring operating costs |
(40,212) |
(1,037) |
|
|
|
Operating profit/loss (-) |
(207,744) |
68,985 |
|
|
|
Finance income |
201,081 |
213,501 |
Non-recurring finance income |
55,972 |
- |
Finance cost |
(18,647) |
(27,417) |
Non-recurring finance cost |
- |
(10,069) |
|
|
|
Profit before tax |
30,662 |
245,000 |
|
|
|
Taxes |
17,120 |
26,292 |
|
|
|
Profit for the year |
47,782 |
271,292 |
|
|
|
Loss brought forward |
(235,924) |
(507,217) |
|
|
|
Accumulated losses to be carried forward |
(188,142) |
(235,924) |
|
December 31 |
|
|---|---|---|
(thousands of €) |
2024 |
2023 |
Assets |
|
|
|
|
|
Non-current assets |
545,301 |
464,865 |
Intangible fixed assets |
109,134 |
58,349 |
Tangible fixed assets |
16,519 |
16,025 |
Financial fixed assets |
297,493 |
268,400 |
Non-current trade and other receivables |
122,155 |
122,091 |
|
|
|
Current assets |
3,498,843 |
3,836,396 |
Inventories |
51,192 |
73,978 |
Trade and other receivables |
108,323 |
91,066 |
Deferred costs |
25,314 |
10,889 |
Accrued income |
7,934 |
14,651 |
Cash and cash equivalents |
3,306,080 |
3,645,812 |
Total assets |
4,044,144 |
4,301,261 |
|
|
|
Equity and liabilities |
|
|
|
|
|
Equity |
2,829,485 |
2,781,703 |
Share capital and reserves |
356,445 |
356,445 |
Share premium account |
2,661,182 |
2,661,182 |
Accumulated losses |
(188,142) |
(235,924) |
|
|
|
Liabilities |
1,214,659 |
1,519,558 |
Non-current liabilities |
17,539 |
13,972 |
Provisions |
17,539 |
13,972 |
Current liabilities |
1,197,120 |
1,505,586 |
Trade and other payables |
126,717 |
178,117 |
Tax, payroll and social security liabilities |
11,989 |
23,758 |
Accrued costs |
- |
538 |
Deferred income |
1,058,414 |
1,303,173 |
Total equity and liabilities |
4,044,144 |
4,301,261 |
Galapagos NV’s operating income decreased by €408.8 million in 2024, from €1,004.9 million in 2023 to €596.1 million in 2024. This decrease was due to a lower turnover, of €325.5 million, mainly recognition of upfront payments. The sale of the Jyseleca® business to Alfasigma on January 31, 2024 led to the full recognition in revenue in 2024 of the remaining deferred income related to filgotinib.
There was also a decrease due to internally generated intangible assets – being capitalized R&D expenses – which contributed by €87.2 million less to our operating income than previous year. Other operating income increased with €23.8 million and amounted to €39.9 million for the year ended December 31, 2024, including €24.7 million cross-charges to Alfasigma, €2.0 million of grants recognized for R&D projects, €5.2 million recuperation of withholding taxes for scientists and €5.9 million services rendered to Alfasigma during the transition period.
The operating costs of 2024 amounted to €803.9 million compared to €935.9 million in 2023.
Material purchases increased from €28.7 million in 2023 to €46.4 million in 2024, due to an increase in cost of goods sold.
Services and other goods decreased to €334.6 million compared to €397.1 million in 2023, primarily due to decreased external subcontracting for our preclinical studies and clinical trials.
Personnel costs in 2024 decreased to €57.9 million compared to €73.6 million in 2023. The number of employees at Galapagos NV at the end of 2024 amounted to 278 as compared to 367 at the end of 2023, excluding insourced personnel. The average number of FTE in 2024 decreased to 292, compared to 369 in 2023.
Depreciation decreased to €294.1 million in 2024, compared to €360.5 million in 2023, 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 €70.8 million in 2023 to €27.1 million in 2024 caused by a reduction in transfer pricing management fees.
Non-recurring operating costs increased from €1.0 million in 2023 to €40.2 million in 2024 caused by the contribution for R&D costs of €40.0 million due to Alfasigma.
Galapagos NV’s 2024 financial income decreased to €201.1 million compared to €213.5 million in 2023, financial costs decreased to €18.6 million compared to €27.4 million in 2023. Non-recurring finance income in 2024 consisted of the more-value on the sale of the Jyseleca® business to Alfasigma. Non-recurring finance cost in 2023 consisted of impairment on financial assets. The net exchange loss amounted to €29.3 million in 2023 as compared to a net exchange gain of €44.7 million in 2024 and consisted mainly of non-realized currency exchange results on U.S. dollar. The net interest income in 2024 amounted to €117.2 million as compared to a net interest income of €97.9 million in 2023. Financial income also included dividend income of €12.3 million in 2024 and €109.5 million in 2023.
Tax income recorded in 2024 of €17.1 million as compared to €26.3 million tax income in 2023, related to tax incentives for investments in intangible fixed assets.
Investments in fixed assets in 2024 amounted to €73.7 million, excluding the internally generated assets. They consisted mainly of investments in intangible assets, being an upfront exclusivity payment and software, as well of costs for building improvements, new laboratory and IT equipment.
Non-current and current other receivables amounted to respectively €122.2 million and €64.1 million and included the receivable for tax incentives amounting to respectively €118.7 million and €18.1 million in 2024, compared to other receivables for tax incentives of €117.4 million and €13.8 million in 2023.
Galapagos NV’s cash position at the end of 2024 amounted to €3,306.1 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 positive result. The financial year 2024 closed with a profit of €47.8 million compared to a profit of €271.3 million in 2023. The non-consolidated annual accounts of Galapagos NV show accumulated losses of €188.1 million as at December 31, 2024; we refer to the Going concern statement for justification for the application of the valuation rules under the going concern assumption.
In 2024, 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.