Sanofi(SNY)2024-07-25 14:26Debt and Financial Position - As of June 30, 2024, total debt increased to €21,918 million from €16,531 million at the end of 2023, with net debt rising to €15,112 million from €7,793 million[5]. - Long-term debt decreased to €12,503 million from €14,347 million, while short-term debt surged to €9,236 million from €2,045 million[5]. - Sanofi's total liabilities related to business combinations and non-controlling interests rose to €8,219 million from €7,602 million at the end of 2023[14]. - Sanofi's interest rate and currency derivatives used to manage debt increased to €179 million from €139 million[5]. - The market value of Sanofi's debt, net of cash and cash equivalents, was €14,214 million as of June 30, 2024, compared to €7,086 million as of December 31, 2023[133]. - Sanofi had two syndicated credit facilities of €4 billion each, with one expiring in December 2027 and the other in March 2029, neither of which was drawn down as of June 30, 2024[158]. - As of June 30, 2024, Sanofi's total contingent consideration related to acquisitions amounted to €728 million, with €61 million classified as current[163]. Income and Revenue - Total net sales for the first half of 2024 reached €21,209 million, an increase from €20,187 million in the same period of 2023, representing a growth of 5.1%[60]. - Business operating income for the first half of 2024 was €5,656 million, down from €6,059 million in the first half of 2023, indicating a decrease of 6.6%[51]. - Total biopharma revenue for the first half of 2024 was €18,378 million, up from €17,467 million in the first half of 2023, marking a growth of 5.2%[48]. - Net income for the six months ended June 30, 2024, was €2,263 million, a decrease of 34.5% compared to €3,456 million for the same period in 2023[67]. - Operating income for the first half of 2024 was €3,044 million, compared to €4,322 million in the first half of 2023, representing a decrease of 29.5%[65]. - The total income before tax for the first half of 2024 was €2,739 million, down from €4,238 million in the same period of 2023, reflecting a decrease of approximately 35.3%[179]. Expenses and Costs - Research and development expenses for the first half of 2024 amounted to €3,423 million, compared to €3,193 million in the first half of 2023, reflecting an increase of 7.2%[60]. - Employee-related expenses surged to €849 million in the first half of 2024, significantly higher than €185 million in the same period of 2023[44]. - Restructuring costs and similar items for the first half of 2024 totaled €1,331 million, significantly higher than €547 million in the first half of 2023, indicating a rise of 143.5%[51]. - Financial expenses for the first half of 2024 were €586 million, compared to €370 million in the same period of 2023, indicating a rise of 58.5%[65]. - The company incurred a net cash outflow of €1,885 million for acquisitions of consolidated undertakings and investments accounted for using the equity method in the first half of 2024[102]. Cash and Equivalents - Sanofi's cash and cash equivalents decreased to €(6,795) million from €(8,710) million[5]. - Cash and cash equivalents decreased to €6,795 million as of June 30, 2024, down from €8,710 million at the end of 2023[58]. - Sanofi's cash and cash equivalents at the end of the period stood at €6,795 million, a decrease from €8,710 million at the beginning of the period, representing a decline of 22.0%[100]. Shareholder Information - The average number of shares outstanding was approximately 1,249.4 million, with basic earnings per share at €1.80, down from €2.74 in the previous year[65]. - The total number of shares outstanding as of June 30, 2024, was 1,266,362,756, with a share capital of €2,532,725,512[149]. - The company paid dividends of €3.76 per share for the year 2023, totaling €4,704 million[69]. - The average number of shares used to compute diluted earnings per share was 1,253.8 million for the first half of 2024, slightly down from 1,254.5 million in the same period of 2023[182]. Provisions and Liabilities - Provisions increased to €5,918 million in the first half of 2024, compared to €5,018 million in the same period of 2023[14]. - Sanofi's non-current provisions and other non-current liabilities increased to €8,219 million as of June 30, 2024, compared to €7,602 million at the end of 2023, an increase of 8.1%[92]. - Sanofi's provisions for pensions and other post-employment benefits totaled €2,214 million as of January 1, 2024, with total provisions increasing to €5,262 million by June 30, 2024[198]. Acquisitions and Collaborations - Sanofi entered a co-exclusive licensing agreement with Novavax, involving an upfront payment of 1.2 billion[17]. - A collaboration agreement with Fulcrum Therapeutics for losmapimod includes an upfront payment of 975 million[17]. - Sanofi completed the acquisition of Inhibrx for 1,908 million allocated to in-process development for SAR447537[139]. - Acquisitions of other intangible assets in the first half of 2024 totaled €772 million, including €463 million related to agreements with Novavax[142]. Other Financial Metrics - The company reported a gross profit of €15,649 million for the first half of 2024, compared to €15,198 million in the first half of 2023, an increase of 3.0%[60]. - Other comprehensive income for the period was €1,233 million, compared to a loss of €973 million in the same period last year[67]. - Comprehensive income for the first half of 2024 totaled €3,496 million, an increase from €2,483 million in the first half of 2023[67]. - Deferred tax assets increased to €780 million in the first half of 2024, compared to €441 million in the same period of 2023, indicating a significant rise of 76.9%[179]. Market and Economic Conditions - The cumulative inflation rate in Argentina and Turkey exceeded 100% over the last three years, leading Sanofi to treat these countries as hyperinflationary economies[108]. - The company has determined that its activities are not subject to significant seasonal fluctuations, indicating stable operational performance throughout the year[81]. - Currency translation differences on foreign subsidiaries resulted in a gain of €1,167 million for the first half of 2024, compared to a loss of €1,089 million in the same period of 2023[155].