Samsung Biologics Reports Operating Profit of 62.6 Billion KRW in Q1, Returns to Profitability

[Asia Economy Reporter Choi Dae-yeol] Samsung Biologics announced on the 20th that its operating profit for the first quarter of this year turned positive to 62.6 billion KRW compared to the same period last year.

The increase in operating profit was influenced by reduced factory operations in the first quarter of last year due to regular maintenance of Plants 1 and 2. Net profit also turned positive to 39.1 billion KRW, an increase of 77.6 billion KRW during the same period.

Sales increased by 65% during the same period, reaching 207.2 billion KRW. Sales grew as the product mix of Plant 1 changed and sales of products produced in Plant 2 increased. The operating profit margin was 30.2%. The company explained, "One characteristic of the Contract Manufacturing Organization (CMO) business is that the types of products produced, as well as production types such as commercial production and trial production, can change," adding, "This can affect factory utilization rates in the short term."

Compared to the fourth quarter of last year, sales decreased by 34% and operating profit by 41% due to changes in the product mix of Plant 2. The debt ratio improved by 0.4 percentage points from the previous quarter to 35.4%, and the borrowings ratio improved by 1.1 percentage points to 13.5% during the same period.

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