Samsung Biologics Reports Record-High Q1 Sales of KRW 720.9 Billion

Samsung Biologics Achieves 41% Sales Growth and 9% Operating Profit Increase
"Bioepis Effect" Drives Sharp Revenue Surge
Annual Revenue Guidance Raised
on Anticipated "Plant 4 Effect" in Second Half

Samsung Biologics achieved its highest-ever first-quarter results. Consolidated sales surged due to the full acquisition of Samsung Bioepis in April of last year, which led to changes in consolidated accounting. In addition, on a standalone basis, Samsung Biologics' revenue grew by 16% year-on-year.

In particular, as this year is expected to follow a 'low in the first half, high in the second half' performance trend, the company anticipates that Plant 4, which will begin full operation in June, will contribute to revenue. Accordingly, Samsung Biologics has raised its annual revenue growth forecast for this year from the previous 10-15% to 15-20%.

Incheon Songdo Samsung Biologics 2nd Bio Campus Rendering
Photo by Samsung Biologics

On April 24, Samsung Biologics announced through a regulatory filing that its consolidated sales for the first quarter of this year reached KRW 720.9 billion, with operating profit at KRW 191.7 billion. Compared to the same period last year, sales increased by 41% and operating profit by 9%. The company explained, "This was driven by the stable growth of the contract development and manufacturing organization (CDMO) business, as well as the effect of consolidating Samsung Bioepis' results."

With Bioepis now included in consolidated accounting instead of being treated as an affiliate, the elimination of internal transactions and amortization from purchase price allocation (PPA) led to a reduction of KRW 83.5 billion in sales and KRW 79 billion in operating profit. However, overall performance growth more than offset these reductions. The company emphasized, "PPA amortization does not affect cash flow," and added, "EBITDA, which reflects actual cash generation capability, increased by 33.7% year-on-year."

Samsung Biologics also continued to grow on a standalone basis, recording sales of KRW 591 billion and operating profit of KRW 234.4 billion, representing increases of 16% and 33%, respectively, compared to the same period last year. The company attributed this to increased sales of drug substances (DS), higher exchange rates, and the maximization of operational efficiency by running Plants 1 to 3 at full capacity, which resulted in a significant increase in operating profit.

Samsung Bioepis, now a subsidiary, posted sales of KRW 213.4 billion and operating profit of KRW 36.1 billion, up 7% and 4% year-on-year, respectively. Bioepis stated, "Despite a decline in selling prices due to intensified competition, the growth trend in sales continued thanks to increased sales volumes of existing products and the impact of newly launched products." The company added, "With the continued expansion of sales for the Lucentis biosimilar (SB11), the launch of the Humira biosimilar (SB5) in the U.S. market is anticipated in the second half of the year."

Samsung Biologics Raises Earnings Outlook on Full Operation of Plant 4 in the Second Half

Aerial view of Samsung Biologics Plant 4 in Songdo, Incheon. It aims for a production capacity of 240,000 liters, the largest in the world for a single plant, and is preparing for full operation in June. [Photo by Samsung Biologics]

Meanwhile, Samsung Biologics revised its earnings outlook in a disclosure released on the same day. Previously, Samsung Biologics had forecast annual sales growth of 10-15% year-on-year. However, in the amended disclosure, the company raised its sales growth projection to 15-20% compared to the previous year. As a result, Samsung Biologics' annual sales forecast now ranges from KRW 3.4515 trillion to KRW 3.6016 trillion, with the company announcing KRW 3.5265 trillion as its mid-point estimate.

Samsung Biologics cited "increased visibility regarding the sales contribution of Plant 4 in the second half" as the reason for the revision. The company expects that significant earnings growth will begin in the second half of this year, driven by the impact of Plant 4, which boasts the world's largest single-plant production capacity at 240,000 liters. Since Plant 4 began partial operation in October of last year and is scheduled for completion in June, its sales are expected to be reflected in the company's results starting in the second half of the year. Currently, Plant 4 has contract manufacturing organization (CMO) agreements with nine clients for 12 products and is in discussions with an additional 29 clients regarding CMO contracts for 44 products.

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