Samsung Biologics (207940.KS) posted second-quarter revenue of 1.3209 trillion won, marking its highest quarterly performance on record. The result was driven by high utilization rates at its production plants and a favorable exchange rate environment.
Samsung Biologics said in a regulatory filing on the 23rd that its consolidated second-quarter revenue rose 30.2% from the same period last year to 1.3209 trillion won. It marks the highest quarterly revenue since the spinoff of Samsung Bioepis last November. Operating profit rose 22.9% year-on-year to 586.4 billion won.
Cumulative first-half revenue reached 2.578 trillion won, up 28.0% from a year earlier. Operating profit also grew 28.6% to 1.1672 trillion won, continuing solid growth.
The strong performance was led by full operation of Plants 1 through 4 and a rise in the exchange rate. For contract development and manufacturing organizations (CDMOs), which have a high proportion of overseas sales, a higher won-dollar exchange rate increases won-converted revenue. The operating margin remained in the 40% range despite related costs being reflected in advance, ahead of full revenue recognition from Plant 5 and the Rockville, U.S. production facility.
Orders are also steadily expanding. Since its founding, cumulative orders total 115 contract manufacturing (CMO) deals and 176 contract development (CDO) deals, with a cumulative order value of 21.7 billion dollars.
The company is also expanding its global sales network. Samsung Biologics plans to open a European sales office in Amsterdam, the Netherlands, during the third quarter. Following its bases in New Jersey, U.S., and Tokyo, Japan, it plans to secure a European foothold to build a global sales system spanning the U.S., Europe, Japan, and the Asia-Pacific (APAC) region.
The expansion of its business portfolio also continues. Samsung Biologics recently decided to acquire global peptide CDMO company PolyPeptide Group with an investment of about 2.7 trillion won. Its strategy is to add new modalities such as messenger ribonucleic acid (mRNA), antibody-drug conjugates (ADC), and peptides to its existing antibody drug-focused business, strengthening its order competitiveness.
"Despite some disruptions in batch production, we will be able to achieve the upper end of this year's annual revenue growth guidance based on expanded revenue contributions from Plant 5 and the Rockville, U.S. production facility," a Samsung Biologics official said. The revenue growth guidance is 15-20% year-on-year.
