Samsung Biologics (KRX: 207940.KS), a leading global contract development and manufacturing organization (CDMO), has unveiled its financial performance for the first quarter of fiscal year 2024.
John Rim, CEO and President of Samsung Biologics, emphasized the company’s sustained growth as a testament to its adaptability to diverse client needs and its dedication to quality and operational excellence. With a substantial order backlog exceeding USD 12.5 billion, demand for their client-centric services remains robust. Rim highlighted proactive investments in advanced therapeutic technologies and the ongoing construction of an antibody-drug conjugate (ADC) facility as pivotal to their progress in next-generation drug development. He also reaffirmed their commitment to expanding production capabilities, with Plant 5’s completion scheduled for next year to meet market demands and enhance value for stakeholders.
First Quarter 2024 Results
Samsung Biologics reported a consolidated revenue of KRW 946.9 billion for the first quarter of 2024, marking a 31.3% increase from the previous year, propelled by successful operations at Plant 4 and contributions from the Bioepis subsidiary. Consolidated operating profit reached KRW 221.3 billion, with net profit standing at KRW 179.4 billion, reflecting a 26.5% increase from the same period last year. Positive outlook persists, with expectations of sustained growth driven by Plant 4’s continued ramp-up and a projected 10-15% annual revenue increase for 2024.
On a standalone basis, Samsung Biologics recorded KRW 669.5 billion in revenue, a 13.3% increase from the previous year, with operating profit reaching KRW 232.7 billion.
Fiscal Year 2024 Outlook
Samsung Biologics remains committed to strategic investments to meet rising capacity demands and adapt to market shifts. Construction of Plant 5 progresses on schedule, with operations slated to commence in April 2025. The company’s standalone ADC manufacturing facility, set to be operational within 2024, aims to enhance client product management efficiency and minimize risk, ensuring high-quality delivery and speed-to-market. Collaborations with partners like LigaChem Biosciences underscore the company’s commitment to diversifying its portfolio and advancing ADC technologies.
In alignment with its net-zero goals, Samsung Biologics integrates sustainability across its operations, focusing on energy efficiency, renewable energy adoption, and emissions reduction. Recognized by major ESG agencies, the company received EcoVadis’ Platinum Sustainability Rating and an A- rating from the Carbon Disclosure Project for its climate change mitigation efforts. Active participation in global initiatives like the Sustainable Markets Initiative and Sustainable Aviation Buyers Alliance underscores their commitment to driving sustainable innovations.
Samsung Biologics’ industry leadership was further recognized with the 2024 CDMO Leadership Award across six performance categories, reaffirming its dedication to client satisfaction.
For comprehensive performance and financial details, refer to the Earnings Release.
