Samsung Biologics reports third quarter 2023 financial results
Samsung Biologics reports third quarter 2023 financial results
Recorded Q3’23 consolidated revenue of KRW 1,034 billion
Recorded Q3’23 consolidated operating profit of KRW 319 billion
Achieved record-high quarterly consolidated revenue as a result of successful Plant 4 ramp-up bolstering order backlog
Incheon, S. Korea, October 25, 2023 – Samsung Biologics (KRX: 207940.KS), the world’s leading contract development and manufacturing organization (CDMO), today announced financial results for the third quarter of fiscal year 2023.
"We have achieved a remarkable milestone with consolidated sales surpassing KRW 1 trillion in a single quarter, ultimately demonstrating our commitment to excellence and innovation," said John Rim, CEO and President of Samsung Biologics. "Our expanding partnerships with global leading pharmaceutical companies and a thriving sales backlog reflect the trust our clients place in us and our capabilities. Looking ahead, our expansion plans, including the construction of the ADC facility and Plant 5, will meet the increasing market demand and support our clients’ needs for both capacity and business diversification."
THIRD QUARTER 2023 RESULTS
In the third quarter of 2023, consolidated revenue exceeded KRW 1 trillion for the first time in a single quarter, marking an 18% increase from the KRW 873 billion reported in the same period of the previous year. This is attributed to a rapid increase in the operating rate following the full completion of Plant 4 and a robust sales backlog, resulting in a projected 20% annual growth in consolidated revenue. Consolidated operating profit for the third quarter of 2023 reached KRW 319 billion, while net profit was KRW 240 billion with an EBITDA of KRW 457 billion.
On a standalone basis, the company reported KRW 883 billion in revenue for the third quarter of 2023, reflecting a 31% increase from KRW 675 billion in the same period in the previous year. Operating profit reached KRW 382 billion, marking a 23% increase from the prior year.
The company also expanded its strategic partnerships to include 14 of the top 20 global pharmaceutical companies, further solidifying the company’s position as a trusted CDMO partner. As of October, Samsung Biologics has accumulated contracts worth over USD 11.8 billion, which includes the previously announced long-term partnership with Pfizer and an expanded strategic agreement with Bristol Myers Squibb.
[Consolidated Earnings, KRW billion]
FISCAL YEAR 2023 OUTLOOK
Samsung Biologics is committed to meeting the growing demand for high-quality biologics. The company’s expansion plans are on track, with the new Plant 5 set to commence operations by April 2025, adding an 180KL of capacity.
As the first facility of Samsung Biologics’ second Bio Campus at its headquarters in Songdo, South Korea, Plant 5 is expected to have the shortest construction timeline at 24 months, made possible by the company’s standardized design, accumulated operational excellence, and proven expertise.
To expand its business portfolio, Samsung Biologics’ separate antibody-drug conjugate (ADC) manufacturing facility is expected to be cGMP-ready within 2024 in order to develop and explore innovative technologies for next-generation biomedicines.
This aligns with the company’s strategic investments, made through the Samsung Life Science Fund, to support biotechs like AimedBio and Araris Biotech AG who are pioneering ADC technology.
Samsung Biologics also continues to engage and drive action in the sustainability front. In July, together with global leaders from across the healthcare sector under The Sustainable Markets Initiative Health Systems Task Force, Samsung Biologics President and CEO John Rim announced an open letter, calling on suppliers to commit to joint, minimum climate and sustainability targets.
The company has also joined the Sustainable Aviation Buyers Alliance (SABA), a non-profit organization accelerating the path to net-zero aviation, to help reduce emissions by investing in high-integrity Sustainable Aviation Fuel (SAF).
For more details on performance and financials, please refer to the Earnings Release.
About Samsung Biologics Co., Ltd.
Samsung Biologics (KRX: 207940.KS) is a fully integrated, end-to-end CDMO service provider, offering seamless development and manufacturing solutions from cell line development to final aseptic fill/finish as well as laboratory testing support for the biopharmaceutical products we manufacture. Our state-of-the-art facilities are cGMP compliant with bioreactors ranging from small to large scales to serve varying client needs. To maximize our operational efficiency and expand our capabilities in response to growing biomanufacturing demand, Samsung Biologics recently completed BioCampus I with Plant 4 offering a combined 604KL total capacity, and launched BioCampus II with the construction of Plant 5, which will be operational in April 2025 adding 184KL biomanufacturing capacity. Additionally, Samsung Biologics America enables the company to work in closer proximity to clients based in the U.S. and Europe. We continue to upgrade our capabilities to accommodate our clients by investing in technologies such as an antibody-drug conjugate (ADC) facility, a dedicated mRNA manufacturing facility, and additional aseptic filling capacity. As a sustainable CDMO partner of choice, we are committed to on-time, in-full delivery of the products we manufacture with our flexible manufacturing solutions, operational excellence, and proven expertise.
Samsung Biologics Contact:
Claire Kim
Head of Marketing Communications