3Revenue and expenses

PolyPeptide generates revenue that can be divided into the two business areas described below:

Revenue by business area

Development revenue (formerly Custom Projects) business area specializes in the manufacturing of custom research-grade peptides, in milligram, gram or pilot scale quantities, at predefined purity levels for use in pre-clinical and clinical development as well as for regulatory and scientific studies. Development also provides cGMP manufacturing services during the later phases of development. Revenue is allocated to Development for sales of products in the pre-clinical through clinical stage development (i.e., prior to commercial launch) as generally set out in master service agreements and/or the accompanying work / purchase orders.

Commercial revenue (formerly Contract Manufacturing/Generics and Cosmetics) business area manufactures peptides for commercial stage peptide therapeutics, at scale, in commercial batches and in accordance with cGMP requirements. The Group’s Commercial services also include consultation for continuous improvement and process stabilization / optimization to support scale-up, process changes to support cost of goods sold enhancement, lifecycle management and extension as well as regulatory support. Revenue is allocated to Commercial where production is related to the commercial supply, as generally set out in master supply agreements and/or the accompanying work / purchase orders. In addition, Commercial also includes manufacturing of peptide-based generics for the human and veterinary market. The business area also includes revenue generated from the sale of peptides used in cosmetics.

Revenue by geographical area

Revenue is attributed to the individual geographical area based on the invoice address of the respective customer.

Revenue from contracts with customers

Revenues from Active Pharmaceutical Ingredients (API) fully relate to the sale of goods and revenues from related services relate to the rendering of services. All revenues from contracts with customers classify as business-to-business.

Contract assets and contract liabilities

Contract assets

Contract liabilities

Contract costs

In 2025, the Group incurred costs of nil in relation to setup activities required in order to satisfy future performance obligations (2024: 1,563). The costs in 2024 (i) directly relate to two contracts with customers, (ii) have generated resources that will be used in satisfying the performance obligations in the contracts, and (iii) are expected to be recovered. Since the nature of the costs incurred is not within the scope of another IFRS standard, the costs incurred have been capitalized as an asset from costs to fulfil a contract in accordance with IFRS 15 – Revenue from Contracts with Customers.

The asset will be amortized in a way that reflects the expected progress towards complete satisfaction of the performance obligations. It is not expected that this will be on a straight-line basis over the terms of the contracts.

Other operating income

The research refund relates to a deduction on tax paid due to qualified research in chemistry.
The investment grants relate to improving air emission handling, etc. Sale of intellectual property mainly reflects proceeds from the disposal of internally generated know-how that had not previously been capitalized.

Marketing and sales expenses

Research expenses

General and administrative expenses

Financial income

Financial expenses

Staff costs

An amount of kEUR 113,737 (2024: kEUR 102,541) relating to salaries and employee benefits has been included in cost of sales.

The average number of FTEs of the principal departments is as follows:

Average number of employees

Depreciation and amortization included in the income statement

Included in Cost of sales:

Included in General and administrative expenses: