Samsung Biologics Surpasses 1 Trillion Won In Annual Operating Profit For 1st Time
Samsung Biologics has made history by becoming the first company in the domestic pharmaceutical and biotechnology industry to achieve annual operating profits of more than $1 billion. After its annual sales reached 3 billion in 2022 and its sales exceeded 1 billion in the third quarter of 2023, the company continues to set new records.
As of January 24, Samsung Biologics reported annual operating profit of 3.6946 trillion won ($2.7666 billion), compared to 1.1137 trillion won last year. Compared to 2022, sales increased by 693.3 billion won (23%), and operating profits increased by 130.1 billion won (13%). On a standalone basis, reflecting higher sales and operating efficiency at the fourth plant, the company reported sales of 2.9388 trillion won (21%) and operating profit of 1.2042 trillion won (24%).
The increase comes amid industry concerns as major contract development and manufacturing organizations (CDMOs) revised downward their revenue estimates. Since going public in 2016, Samsung Biologics' sales have increased twelvefold in seven years, at a compound annual growth rate (CAGR) of 44%.
Samsung Biologics expects to continue its strong growth trajectory this year through continued business expansion. The company expects a 10 to 15 percent increase in sales compared to last year, and this year's revenue is expected to reach 4,156.4 million won.
Samsung subsidiary Bioepis reported sales of 1.0203 trillion won and operating profit of 205.4 billion won, surpassing the trillion won sales mark for the first time in its history. Sales increased by 74 billion won (8%) from last year, and operating profit decreased by 26.1 billion won (-11%) due to the base effect of significant payments received last year.
In the fourth quarter of last year, sales increased due to the commissioning of Samsung BioLogics' fourth plant and increased efficiency in the first three plants, and Samsung Bioepis achieved a consolidated quarterly sales record with higher product sales and new product launches. 1.0735 million won. Fourth-quarter revenues rose 11.88% year-on-year to 350 billion won, beating market expectations by 10.5%.
Samsung Biologics plans to continue its growth momentum this year, and quickly respond to customer requirements by breaking ground on its fifth factory and second biocampus. Operations are scheduled to begin in April next year.
If operations begin as planned, total production capacity will reach 784,000 litres, strengthening Samsung Biologics' leadership in the global CDMO market.
