4 years on KOSPI Samsung Biologics to earn over KRW 1 tln

Company in full swing, 2020 H1 sales exceeds KRW 500 billion

Inks future growth engine deals valued at 1.8 trillion won in 2020 H1

Creating positive cycle of investment and sales, planning on the fourth manufacturing facility

Samsung Biologics is now in full swing to generate sales.

 

This year’s sales are projected to exceed 1 trillion won as its profitability improves every year.

 

In the first half of the year, the Korean company has inked a few contracts valued approximately at 1.8 trillion won, which would propel the company forward as future growth engine.

 

The contracts would expand out to establish the fourth factorry and the second bio campus leveraging the economy of scale.

 

On July 21, Samsung Biologics disclosed earning report that found the company’s sales have reached 514.9 billion won in the first half of the year, making a growth of 153.08 percent from the same time last year at 203.4 billion won.

 

In the first and second quarter, the Korean company generated 207.2 billion won and 307.7 billion won, respectively.

 

The second quarter sales have marked the second highest figure following last year’s fourth quarter (313.3 billion won).

 

Based on the first two quarters, Samsung Biologics projects this year would be first year to break through the 1 trillion won mark.

 

Samsung Biologics’ external growth has surged steeply since the listing.

 

Starting from 294.6 billion won in 2016 when the company went public on KOSPI, Samsung Biologics has reached 464.6 billion won, 535.8 billion won and 701.6 billion won in 2017, 2018 and 2019, respectively.

 

The company would triple sales in 2016 in merely four years, when the company surpasses the 1 trillion won mark this year.

 

New deals in 2020 to make 1.8 trillion won Apparently, the Korean company’s sales growth would continue for a while.

 

Samsung Biologics has sealed 440 billion won deal with Vir Biotechnology and 280 billion won deal with GSK this year alone.

 

The two deals with the global companies are totaled at 1.8 trillion won, easily doubling last year’s sales of 701.6 billion won.

 

Compared to last year’s order (approximately 450 billion won), the new deals would quadruple the amount.

 

The company has strengthened its ‘one-stop service’ strategy and enhanced cost competitiveness based on vertical integration consisting contract research organization (CRO), contract development organization (CDO) and contract manufacturing organization (CMO), The notion of one-stop service has contributed to the company signing the global deals, but also it improved the company’s profitability.

 

In the first half of the year, Samsung Biologics’ operating profit alone has reached 143.7 billion won.

 

Although last year’s operating profit (91.7 billion won) set the historic high for the company, six months into this year the last year’s record is already 50 billion won behind.

 

The company official elaborated, “The stable management over selling and administrative expense combined with increased profit margin have pushed up the operating profit by over 180 billion won compared to last year (-38.8 billion won).” Creating a positive cycle of ‘investment and performance’ The industry sources evaluate the company has created a positive cycle to generate revenue.

 

As investment and performance are feeding each other, the company is also gaining more means to invest further.

 

In fact, Samsung Biologics’ two manufacturing facilities are at full throttle with the consecutive signing of the global deals in last six months and expanded CMO deals with global companies.

 

Its third facility is also filling up the order.

 

The company is proactively reviewing the plans for the fourth facility and the second bio campus.

 

The plan would be disclosed when the investment scale, peak performance and prospective business development timeline are drawn out.