Sanofi(US:SNY)2026-02-17 17:34Financial Transactions - Sanofi completed the Opella Transaction on April 30, 2025, generating a net cash inflow of €10.4 billion[604]. - Sanofi received an upfront payment of $825 million from the sale of global rights to Enjaymo, with potential milestone payments of up to $250 million based on sales[605]. - In 2024, Sanofi acquired Inhibrx for a net cash outflow of $2,035 million, adding SAR447537 to its rare disease pipeline[607]. - Sanofi entered into an agreement to acquire Dynavax and completed acquisitions of Vicebio, Blueprint, DR-0201, and Vigil[609]. Revenue Recognition and Accounting Policies - Revenue recognition policies are based on IFRS 15, with revenue recognized upon transfer of control over products to customers[611]. - Other revenues include royalty income and sales from non-Sanofi products, with significant contributions from VaxServe and manufacturing services[615]. - Sanofi's accounting policies for business combinations follow the acquisition method, measuring identifiable assets and liabilities at fair value[616]. - The company tests intangible assets for impairment based on future cash flows and market conditions, with significant assumptions involved[619]. Provisions and Expenses - Provisions for risks are recorded when there is a present obligation and a reliable estimate can be made of the outflow of resources[627]. - Provisions for restructuring costs are estimated based on past experience and management's knowledge, reflecting potential future obligations[630]. - R&D expenses increased by 6.1% to €7,842 million, representing 18.0% of net sales, driven by strategic prioritization in key therapeutic areas[663]. - Selling and general expenses rose by 3.9% to €9,543 million, accounting for 21.9% of net sales, reflecting improved operational efficiency[664]. Sales Performance - Net sales for 2025 reached €43,626 million, a 6.2% increase from €41,081 million in 2024, with a 9.9% rise at constant exchange rates (CER)[634]. - Dupixent generated net sales of €15,714 million, reflecting a 20.2% increase on a reported basis and a 25.2% increase at CER[638]. - ALTUVIIIO achieved net sales of €1,160 million, up 77.6% at CER, contributing to a total hemophilia A franchise sales of €1,435 million, a 42.6% increase at CER[641]. - Nexviazyme/Nexviadyme sales were €790 million, a 21.4% year-on-year increase, with total Pompe franchise sales reaching €1,309 million[642]. - New product launches contributed €5,721 million in sales, marking a 29.1% increase compared to the previous year[640]. Profitability Metrics - Gross profit margin improved to 77.2% in 2025 from 75.7% in 2024, despite an increase in research and development expenses to €7,842 million[634]. - Operating income decreased to €6,344 million, representing 14.5% of net sales, down from 17.7% in 2024[634]. - Net income for 2025 was €7,851 million, an increase of 39.5% from €5,618 million in 2024, with net income attributable to equity holders of Sanofi at €7,813 million[634]. - Basic earnings per share rose to €6.40 in 2025 from €4.44 in 2024, while diluted earnings per share increased to €6.37 from €4.43[634]. Cash Flow and Debt - Net cash provided by continuing operating activities was €10,561 million in 2025, up from €8,607 million in 2024[698]. - Net cash outflow from continuing investing activities was €12,849 million in 2025, compared to €4,298 million in 2024, primarily due to acquisitions[699]. - Total debt as of December 31, 2025, was €18,702 million, with net debt at €11,008 million, compared to €16,137 million and €8,772 million in 2024, respectively[691]. - The gearing ratio increased to 15.4% as of December 31, 2025, from 11.3% in 2024[692]. - Free cash flow for the year ended December 31, 2025, was €8,089 million, an increase from €5,955 million in 2024[705]. Asset and Equity Changes - Total assets decreased to €126,805 million as of December 31, 2025, from €132,798 million in 2024, a decline of €5,993 million[711]. - Total equity was €71,710 million as of December 31, 2025, down from €77,857 million in 2024[711]. - The increase in net debt was primarily due to cash outflows related to acquisitions exceeding €500 million per transaction and dividend payouts totaling €4,772 million[711]. - Cash inflow from the Opella transaction amounted to €10,443 million, contributing to the overall liquidity[711].