Seoul: Samsung Biologics Co., the biotechnology division of South Korea's Samsung Group, announced a significant increase in its first-quarter net profit, largely attributed to enhanced production capabilities and a weaker won. The biotech company reported a net profit of 375.6 billion won (approximately US$263.9 million) for the three months ending in March, a substantial rise from the 179.4 billion won recorded in the same period the previous year, as disclosed in a regulatory filing.
According to Yonhap News Agency, the impressive quarterly results were supported by the full-scale operations of Samsung Biologics' No. 1 to No. 3 plants, along with an increase in output from the No. 4 plant. The depreciation of the won against the dollar further contributed to the profit gains. A company spokesperson highlighted that the increase in contract development and manufacturing organization (CDMO) agreements and biosimilar deals also played a crucial role in boosting the company's financial performance.
Currently, Samsung Biologics operates five production plants located in Songdo, 37 kilometers southwest of Seoul. The company has ambitious plans to expand its production facilities to a total of eight plants by 2032, with the fifth plant having commenced operations this month. Furthermore, the company's operating profit more than doubled to 486.7 billion won in the March quarter, compared to 221.3 billion won a year ago, while sales increased by 37.1 percent to 1.29 trillion won from 946.9 billion won.
Looking towards the future, Samsung Biologics anticipates an annual sales growth of 20 to 25 percent by 2025, despite persistent global market uncertainties. To better serve its international clientele and strengthen its regional presence, the company opened a sales office in Japan in December, following earlier expansions into New Jersey and Boston in the United States.