Samsung Biologics Posts Record Sales on U.S. Production

Samsung Biologics. Samsung Biologics recorded an all-time high revenue in the third quarter of this year, following the previous quarter, as the full-capacity operation of Plants 1 to 4 and U.S. production were reflected in the revenue. The company raised its revenue growth forecast for this year from the previous 15~20% to 20%. On Oct. 21, Samsung Biologics announced that its consolidated revenue for the third quarter of this year was 1.4903 trillion won (about $1.12 billion), increasing by 12% from the previous quarter’s record high of 1.3209 trillion won. This is also an 18% increase compared to 1.2575 trillion won in the same period last year. During this period, the operating profit was 640.1 billion won, up 9% from 568.4 billion won in the previous quarter and growing 1% compared to 633.5 billion won in the same period last year. The operating profit was also a record high, but its growth slowed compared to the revenue growth. Net profit was 391.1 billion won, down 9% from 430.7 billion won in the previous quarter and down 21% compared to 496.4 billion won in the same period last year. These results beat market expectations. The average consensus for estimated third-quarter revenue, operating profit, and net profit compiled by financial information provider FnGuide were 1.3569 trillion won, 611.4 billion won, and 465.6 billion won, respectively. The revenue from the Rockville plant in the US was reflected in the third quarter of this year, driving overall top-line growth. As the full-capacity operation of Plants 1 to 4 continued, the company succeeded in achieving double-digit top-line growth. However, as the operating profit growth rate slowed, the operating profit margin for the third quarter was 43%, dropping by 7% points from 50% in the same period last year. The company evaluated that it maintained high profitability through cost reduction and production optimization efforts, despite production disruptions caused by a strike in the first half of the year. The revenue growth forecast for this year was raised from the previous ‘15~20%’ to ‘20%’. According to the guidance, this year’s revenue will be approximately 5.47 trillion won, exceeding 5 trillion won for the first time. The cumulative revenue up to the third quarter was 4.0684 trillion won, increasing by 24% compared to the same period last year. The company will be able to achieve its target if it posts about 1.4 trillion won in revenue in the fourth quarter. According to the company’s earnings release materials, the full-capacity operation of Plants 1 to 4, the revenue from the validation batch of Plant 5 in the second half of the year, and the stabilization of commercial production at the Rockville facility were cited as the basis for raising the guidance. The company stated that it is also discussing new orders to fill the remaining production capacity of the Rockville facility.