Samsung Bio, 1.568 Trillion KRW Sales Last Year... Achieves 1 Trillion KRW Sales for 4 Consecutive Years

Operating Profit 537.3 Billion KRW... 84% Increase YoY
Net Income 393.6 Billion KRW... 63% Increase

Dividend Policy Disclosed... FCF Around 10% After 2025

Incheon Songdo Samsung Biologics Plant 3 (Photo by Samsung Biologics)

[Asia Economy Reporter Chunhee Lee] Samsung Biologics continued its record of being in the '1 trillion KRW sales club' for the fourth consecutive year with cumulative sales of 1.568 trillion KRW last year. Operating profit also surged by 83.5% year-on-year to 537.3 billion KRW.

On the 24th, Samsung Biologics announced that its consolidated operating (preliminary) results for the fourth quarter of last year were sales of 444.314 billion KRW and operating profit of 128.843 billion KRW. These figures represent increases of 18.4% and 39.2%, respectively, compared to the same period last year. However, net profit of 79.318 billion KRW decreased by 17.6% year-on-year.

For the cumulative results of last year, sales grew by 34.6% to 1.568 trillion KRW compared to 1.1648 trillion KRW the previous year, maintaining the record of over 1 trillion KRW in sales for four consecutive years. Operating profit increased by 83.5% to 537.3 billion KRW, and net profit also grew by 63.3% to 393.6 billion KRW. Notably, operating profit increased more than eightfold in four years since the first profit was achieved in 2017. The compound annual growth rate (CAGR) of operating profit reached 69%. Sales also more than tripled during the same period.

Samsung Biologics stated, "The operating profit margin increased to 34% last year due to the rise in the utilization rate of Plant 3 and the effect of operating leverage," and evaluated that "fourth-quarter sales were driven by increased plant utilization, higher sales volume of finished pharmaceutical products (DP), and the impact of exchange rate increases."

On the same day, Samsung Biologics also disclosed its dividend policy aimed at enhancing shareholder value. Considering investments, cash flow, and financial structure comprehensively, it announced that it will consider implementing cash dividends at a level of around 10% of free cash flow (FCF) from 2025 onwards.

Additionally, taking into account investment plans for long-term growth and changes in the market environment, the policy duration is set at three years, and the company pledged to promptly notify any changes to the dividend policy in the future to enhance transparency.

This content was produced with the assistance of AI translation services.