Samsung Biologics Posts Strong Second Quarter Earnings With 48.5% Increase In Sales
INCHEON, South Korea, July 21, 2020 /PRNewswire/ -- Samsung Biologics (KRX: 207940.KS) announced today strong financial results for its fiscal 2020 second quarter ending June 30, 2020, maintaining steady business performance with a high operating margin at 26.4%.
The Company recorded a revenue of KRW 307.7 billion, an increase of 48.5% quarter-on-quarter, and an operating profit of KRW 81.1 billion, up 29.6%. The net income increased by 42% quarter-on-quarter at KRW 52.0 billion. Compared to the corresponding period of last fiscal year, the revenue increased by 294.1% largely due to increased operations at all of its plants 1, 2, and 3.
Despite the difficult economic conditions global markets continue to experience amid the COVID-19 pandemic, the Company has been able to maintain a successful operating margin for three consecutive quarters supporting continuous top line growth.
By leveraging its key technological capabilities and expanding its portfolio beyond CMO to CDO and CRO, the Company drove strong business performance, ultimately signing multiple manufacturing contracts valued approximately at KRW 1.8 trillion in the first half of this year alone, which is about 2.5 times higher than last year's total annual revenue.
Samsung Biologics entered into its largest contract manufacturing agreement with Vir Biotechnology, valued at KRW 440 billion, for a potential COVID-19 treatment, and signed a KRW 280 billion CMO contract with GSK in May to expand its innovative biopharmaceutical portfolio.
"We have adjusted to operating in a more virtual environment due to COVID-19 and the profound changes it introduced," said Tae Han Kim, CEO of Samsung Biologics. "Our Live Virtual Tour and Virtual Exhibition Hall are investments in innovative technology that allow us to communicate and serve our clients and regulatory authorities, while also keeping their safety in mind. In this global crisis, we will continue to raise the bar in strengthening our cost competitiveness and agility for maximum client satisfaction to be a one-stop service provider that is relentless in its pursuit of innovation."
As operations are expected to reach full capacity by 2022, Samsung Biologics is looking into adding a fourth plant and new bio campus to fulfill the growing biopharmaceutical market needs. Additional details will be released once the facility design, schedule, and investment plans are finalized.
About Samsung Biologics Co., Ltd.
Samsung Biologics (KRX: 207940.KS) is a fully integrated CDMO offering state-of-the-art contract development, manufacturing, and laboratory testing services. With proven regulatory approvals, the largest capacity at a single site, and the fastest throughput, Samsung Biologics is an award-winning partner of choice and is uniquely able to support the development and manufacturing of biologics products at every stage of the process while meeting the evolving needs of biopharmaceutical companies worldwide. For more information, visit www.samsungbiologics.com.
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