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Samsung Biologics sets own earnings record in 2020 H1

Samsung Biologics' plant 3
Samsung Biologics' plant 3
Samsung Biologics reached a milestone in the first half of the year by clocking the biggest revenue and operating profit in the January-June period since it was founded in 2011.

The contract development and manufacturing organization posted its second quarter earnings report Tuesday showing a revenue of 307.7 billion won ($256.8 million) and operating profit of 81.1 billion won.

Combined with the first-quarter earnings, Samsung Biologics posted revenue of 514.9 billion won and operating profit of 143.7 billion won in the first half -- its highest to date.

Samsung Biologics said that despite the COVID-19 uncertainties, it was able to maximize its plant operation rate and bring up the second-quarter revenue by 48.5 percent on-quarter, while its on-year rise was 294 percent.

In the first half of 2020, Samsung Biologics’ plants 1, 2 and 3 had evenly increased their operation rate, leading to a diminished burden on fixed spending for maintenance, the company explained.

The rosy earnings report is not a surprise, as Samsung Biologics had been noted for a series of global deals amounting to 1.8 trillion won in the first half.

The contract manufacturing deals with global biologics companies Vir, GSK and a number of unspecified European biopharmas had spelled quadruple volume of orders than the previous year, and roughly 2.5 times its revenue.

As the plants 1 and 2 have reached full capacity, and the demand for production at plant 3 continuously increases, Samsung Biologics is actively reviewing its plan to build the much-rumored plant 4 and a second “Bio Campus” for itself in its home ground of Songdo, Incheon.

Once the plan for the fourth facility fully materializes, it will make an official announcement to elaborate on the size and scope of the investment, the company said.

As of second quarter of 2020, Samsung Biologics showed that it had more than 4.4 trillion won in capital and more than 1.5 trillion won in debt. The company is financially stable with a debt-equity ratio of 35.8 percent and a loan rate of 12.9 percent.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)
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