Ushering in New Era of 4 Trillion Won Revenue
Samsung Biologics has made history by becoming the first in the domestic pharmaceutical and biotech industry to surpass 1 trillion won in annual operating profit. Following the achievement of 3 trillion won in annual sales in 2022 and surpassing 1 trillion won in quarterly sales in the third quarter of 2023, the company has continued to set new records.
On Jan. 24, Samsung Biologics reported consolidated annual sales of 3.6946 trillion won (US$2.7666 billion) and operating profit of 1.1137 trillion won for the last year. Compared to 2022, sales increased by 693.3 billion won (23%) and operating profit increased by 130.1 billion won (13%). On a standalone basis, reflecting sales from its 4th plant and improved operational efficiency, the company reported sales of 2.9388 trillion won (21%) and an operating profit of 1.2042 trillion won (24%).
This growth comes amid industry interest as major Contract Development and Manufacturing Organization (CDMO) companies have recently revised their earnings forecasts downwards. Since its IPO in 2016, Samsung Biologics has recorded a twelvefold increase in sales over seven years, with an annual growth rate (CAGR) of 44%.
Samsung Biologics expects to continue its robust growth trajectory through stable business expansion this year. The company has forecast a 10-15% increase in sales over the previous year, projecting 4.1564 trillion won in revenue for this year.
Samsung Bioepis, a subsidiary, reported sales of 1.0203 trillion won and an operating profit of 205.4 billion won, surpassing 1 trillion won in sales for the first time in its history. Sales increased by 74 billion won (8%) over the previous year, while operating profit decreased by 26.1 billion won (-11%) due to a base effect from milestone payments received last year.
In the fourth quarter of last year, sales were boosted by the operation of Samsung BioLogics’ 4th plant and improved efficiency in its first three plants, along with increased product sales and new product launches by Samsung Bioepis, leading to a record quarterly consolidated sales of 1.0735 trillion won. The fourth quarter operating profit also increased by 11.88% compared to the same period in the previous year, reaching 350 billion won, exceeding market expectations by 10.5%.
Samsung Biologics plans to continue its growth momentum this year by swiftly responding to client demand, starting with the construction of its 5th plant and the second bio campus. The operation is scheduled to begin in April next year.
If operations commence as planned, the total production capacity will reach 784,000 liters, solidifying Samsung Biologics’ leadership in the global CDMO market.