Samsung Biologics Posts Record Quarterly Revenue on Plant Expansion, Raises Guidance

MT Newswires Live10-22

Samsung Biologics (KRX:207940) reported a record third-quarter revenue driven by full plant utilization, though net income declined compared with the same period last year.

The contract development and manufacturing company posted 391.1 billion won in net income attributable to shareholders of the parent for the third quarter, down from 496.4 billion won a year ago, a Wednesday press release showed.

Sales reached 1.490 trillion won, up from 1.258 trillion won for the period ended Sept. 30, and beating the FactSet consensus estimate of 1.395 trillion won. Operating profit increased to 640.1 billion won from 633.5 billion during the period.

Top-line growth was supported by full operations at Samsung Biologics' plants 1 through 4. Production at plant 5 has also begun to ramp up. Operations at its newly acquired Maryland facility also contributed to the increase in revenue, also helping with expanding the company's global footprint to accommodate global demand.

Its operating margin narrowed to 43% during the three months through Sept. 30 from 50.4% a year ago.

Cumulative contract orders topped $21.9 billion on "sustained demand for its development and manufacturing services," Samsung Biologics said.

"We are strategically expanding our manufacturing capacity, multi-modality capabilities, and global operations to address these evolving needs," President and CEO John Rim said.

The company raised its full-year revenue growth guidance to 20% from its previous forecast range of 15% to 20%.

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