Key figures |
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Change |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
2024 |
|
2023 |
|
€ million |
|
% |
||||||
Net sales |
|
8,455 |
|
8,053 |
|
401 |
|
5.0% |
||||||
Operating result (EBIT)1 |
|
2,481 |
|
2,225 |
|
256 |
|
11.5% |
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Margin (% of net sales)1 |
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29.3% |
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27.6% |
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|
|
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EBITDA2 |
|
3,021 |
|
2,545 |
|
476 |
|
18.7% |
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Margin (% of net sales)1 |
|
35.7% |
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31.6% |
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EBITDA pre1 |
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2,995 |
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2,543 |
|
452 |
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17.8% |
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Margin (% of net sales)1 |
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35.4% |
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31.6% |
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Development of sales and results of operations
The development of net sales in the individual quarters in comparison with 2023 as well as the respective organic growth rates are presented in the following graph:
Healthcare
Net sales and organic growth1 by quarter2
€ million/organic growth in %
2 Quarterly breakdown unaudited.
Net sales of the key product lines and products developed as follows in 2024:
Net sales by major product lines/products |
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|
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€ million |
|
2024 |
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Share |
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Organic growth1 |
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Exchange rate effects1 |
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Total change1 |
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2023 |
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Share |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oncology |
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2,009 |
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24% |
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12.7% |
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-2.2% |
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10.5% |
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1,819 |
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22% |
||||
thereof: Erbitux® |
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1,162 |
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14% |
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15.7% |
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-2.4% |
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13.3% |
|
1,025 |
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13% |
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thereof: Bavencio® |
|
735 |
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9% |
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5.0% |
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-1.9% |
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3.0% |
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713 |
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9% |
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Neurology & Immunology |
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1,688 |
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20% |
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2.3% |
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-0.9% |
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1.4% |
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1,665 |
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21% |
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thereof: Mavenclad® |
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1,062 |
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13% |
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12.3% |
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-1.2% |
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11.1% |
|
956 |
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12% |
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thereof: Rebif® |
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626 |
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7% |
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-11.1% |
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-0.5% |
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-11.6% |
|
709 |
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9% |
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Fertility |
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1,528 |
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18% |
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0.8% |
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-2.1% |
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-1.3% |
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1,547 |
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19% |
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thereof: Gonal-f® |
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833 |
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10% |
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0.9% |
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-2.6% |
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-1.7% |
|
847 |
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11% |
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Cardiovascular, Metabolism & Endocrinology |
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2,949 |
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35% |
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8.5% |
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-2.7% |
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5.8% |
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2,786 |
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35% |
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thereof: Glucophage® |
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954 |
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11% |
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11.1% |
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-3.0% |
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8.1% |
|
882 |
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11% |
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thereof: Concor® |
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611 |
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7% |
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9.4% |
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-2.4% |
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7.0% |
|
571 |
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7% |
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thereof: Euthyrox® |
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619 |
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7% |
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11.8% |
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-2.3% |
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9.5% |
|
565 |
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7% |
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thereof: Saizen® |
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366 |
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4% |
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12.5% |
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-2.4% |
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10.1% |
|
332 |
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4% |
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Other |
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280 |
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3% |
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235 |
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3% |
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Healthcare |
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8,455 |
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100% |
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7.0% |
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-2.0% |
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5.0% |
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8,053 |
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100% |
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- In fiscal 2024, the oncology drug Erbitux® (cetuximab) saw organic net sales growth in the mid-teen percentage range, driven by all regions. This was attributable to factors including weaker pandemic-related sales in China in 2023 as well as its inclusion in reimbursement programs for pharmaceuticals in several countries.
- In immuno-oncology, the oncology drug Bavencio® (avelumab) recorded solid year-on-year organic net sales growth in the reporting period. A sales decrease in the high-teen percentage range in the North America region was driven by lower demand due to alternative treatments for patients with locally advanced or metastatic urothelial carcinoma. This decline was more than offset by growth in the other regions.
- Mavenclad® for the oral short-course treatment of highly active relapsing multiple sclerosis (MS) recorded organic net sales growth in the region of 12% in fiscal 2024, thus achieving blockbuster status with total net sales of more than US$ 1 billion for the second year in succession. This favorable sales growth was driven by all regions, but especially by higher demand in the North America, Europe and Latin America regions.
- Rebif®, which is used to treat relapsing forms of multiple sclerosis, saw an organic net sales decline in the region of 11% in fiscal 2024. This was attributable to the ongoing difficult competitive situation in the interferon market due to competition from oral dosage forms and high-efficacy MS therapies, which are expected to cause further declines in sales in the future.
- Net sales in the Fertility product line in the reporting period were broadly unchanged year on year. Gonal‑f®, the leading recombinant hormone used in the treatment of infertility, also recorded largely stable organic net sales performance compared with the previous year. Similarly, other Fertility products remained essentially unchanged year-on-year overall.
- The Cardiovascular, Metabolism & Endocrinology franchise, which includes drugs for the treatment of cardiovascular, thyroid, diabetes and growth disorders as well as diabetes, generated strong organic net sales growth in fiscal 2024, thanks to higher demand. Net sales of the diabetes drug Glucophage® saw growth of around 11%, driven by all regions. The beta-blocker Concor® also recorded strong organic sales growth, while the thyroid product Euthyrox® achieved year-on-year organic sales growth of around 12%. Saizen®, a medication for treating various growth hormone deficiencies, saw organic sales growth in the low-teen percentage range compared with the previous year as a result of higher demand as well as stock-outs of a competing product.
Product sales and organic growth1 of Erbitux®, Glucophage® and Mavenclad® by region – 2024 |
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Total |
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Europe |
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North America |
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Asia-Pacific (APAC) |
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Latin America |
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Middle East and Africa (MEA) |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Erbitux® |
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€ million |
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1,162 |
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461 |
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– |
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502 |
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134 |
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66 |
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Organic growth1 |
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15.7% |
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10.9% |
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– |
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10.9% |
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61.6% |
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19.7% |
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Share |
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100% |
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40% |
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– |
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43% |
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11% |
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6% |
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Mavenclad® |
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€ million |
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1,062 |
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376 |
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563 |
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21 |
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58 |
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44 |
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Organic growth1 |
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12.3% |
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6.0% |
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15.0% |
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6.3% |
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39.3% |
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8.8% |
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Share |
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100% |
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35% |
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53% |
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2% |
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6% |
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4% |
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Glucophage® |
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€ million |
|
954 |
|
136 |
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– |
|
502 |
|
214 |
|
102 |
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Organic growth1 |
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11.1% |
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7.7% |
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– |
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9.7% |
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12.5% |
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20.7% |
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Share |
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100% |
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14% |
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– |
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53% |
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22% |
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11% |
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Net sales in the Healthcare business sector by region in 2024 developed as follows:
Net sales by region |
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€ million |
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2024 |
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Share |
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Organic growth1 |
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Exchange rate effects1 |
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Acquisitions/ |
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Total change |
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2023 |
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Share |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Europe |
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2,720 |
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32% |
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8.2% |
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-1.2% |
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– |
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7.0% |
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2,541 |
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31% |
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North America |
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1,778 |
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21% |
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-0.6% |
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-0.2% |
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– |
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-0.8% |
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1,793 |
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22% |
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Asia-Pacific (APAC) |
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2,305 |
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27% |
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6.1% |
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-2.8% |
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– |
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3.3% |
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2,232 |
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28% |
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Latin America |
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1,056 |
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13% |
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18.3% |
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-5.9% |
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– |
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12.3% |
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941 |
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12% |
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Middle East and Africa (MEA) |
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595 |
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7% |
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11.0% |
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-2.1% |
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– |
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8.9% |
|
546 |
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7% |
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Healthcare |
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8,455 |
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100% |
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7.0% |
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-2.0% |
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– |
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5.0% |
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8,053 |
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100% |
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The following table presents the composition of EBITDA pre in fiscal 2024 in comparison with 2023. The IFRS figures have been modified to reflect the elimination of adjustments included in the functional costs.
Reconciliation EBITDA pre1 |
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2024 |
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2023 |
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Change |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
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IFRS |
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Elimination of adjustments |
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Pre1 |
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IFRS |
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Elimination of adjustments |
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Pre1 |
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Pre1 |
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Net sales |
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8,455 |
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– |
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8,455 |
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8,053 |
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– |
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8,053 |
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5.0% |
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Cost of sales |
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-2,201 |
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– |
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-2,201 |
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-2,029 |
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-1 |
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-2,030 |
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8.4% |
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Gross profit |
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6,254 |
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– |
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6,254 |
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6,024 |
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-1 |
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6,023 |
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3.8% |
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Marketing and selling expenses |
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-1,713 |
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3 |
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-1,710 |
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-1,668 |
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29 |
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-1,639 |
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4.3% |
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Administration expenses |
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-313 |
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12 |
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-301 |
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-314 |
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20 |
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-294 |
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2.6% |
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Research and development costs |
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-1,503 |
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9 |
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-1,493 |
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-1,657 |
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2 |
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-1,655 |
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-9.8% |
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Impairment losses and reversals of impairment losses on financial assets (net) |
|
2 |
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– |
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2 |
|
-41 |
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– |
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-41 |
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>100.0% |
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Other operating income and expenses |
|
-247 |
|
110 |
|
-137 |
|
-120 |
|
-41 |
|
-161 |
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-15.4% |
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Operating result (EBIT)1 |
|
2,481 |
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|
|
|
|
2,225 |
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Depreciation/amortization/impairment losses/reversals of impairment losses |
|
540 |
|
-160 |
|
380 |
|
320 |
|
-10 |
|
310 |
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22.5% |
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EBITDA2 |
|
3,021 |
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|
2,545 |
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Restructuring expenses |
|
8 |
|
-8 |
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– |
|
32 |
|
-32 |
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– |
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Integration expenses/IT expenses |
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11 |
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-11 |
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– |
|
20 |
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-20 |
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– |
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Gains (-)/losses (+) on the divestment of businesses |
|
-45 |
|
45 |
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– |
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-53 |
|
53 |
|
– |
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|
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Acquisition-related adjustments |
|
– |
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– |
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– |
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– |
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– |
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– |
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|
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Other adjustments |
|
– |
|
– |
|
– |
|
– |
|
– |
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– |
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EBITDA pre1 |
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2,995 |
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– |
|
2,995 |
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2,543 |
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– |
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2,543 |
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17.8% |
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of which: organic growth1 |
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22.7% |
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of which: exchange rate effects |
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-5.0% |
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of which: acquisitions/divestments |
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– |
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- In fiscal 2024, gross profit after the elimination of adjustments saw a moderate increase, whereas the gross margin, at 74.0% (2023: 74.8%), decreased slightly year on year.
- Marketing and selling expenses moderately increased in the reporting period. Among other things, this was due to the termination of the strategic alliance with Pfizer Inc., USA (Pfizer), to co-develop and co-commercialize the oncology medicine Bavencio® with effect from June 30, 2023, which has resulted in increased selling activities at the Group since the second half of 2023.
- Administrative expenses after eliminating adjustments saw a moderate year-on-year increase in fiscal 2024, whereas research and development costs after eliminating adjustments declined strongly in the reporting period. This was mainly due to reduced development activity following the termination of the xevinapant development program in the second quarter of 2024 and the evobrutinib development program in the fourth quarter of 2023.
- In fiscal 2024, the negative net balance of other operating expenses and income after eliminating adjustments declined compared with the previous year. This positive development was mainly due to effects from the termination of the strategic alliance with Pfizer to co-develop and co-commercialize the oncology medicine Bavencio®. The royalty payments to Pfizer that replaced the profit share payments for Bavencio® in other operating expenses have since been included in cost of sales, which led to a corresponding decrease in other operating expenses. This effect more than offset the absence of income from the disposal of a non-strategic brand in the previous year.
- EBITDA pre saw growth in the high-teen percentage range in fiscal 2024, resulting in an EBITDA pre margin of 35.4% (2023: 31.6%).
The development of EBITDA pre in the individual quarters in comparison with 2023 is presented in the following overview:
Healthcare
EBITDA pre1 and change by quarter2
€ million/change in %
2 Quarterly breakdown unaudited.