Seoul: Samsung Biologics Co., the biotech arm of Samsung Group, said Tuesday its net profit more than doubled in the third quarter from a year earlier on the back of record-breaking sales. Samsung Biologics' net profit for the July-September period totaled 574.5 billion won (US$399.7 million), up 117.2 percent from a year earlier, according to the company in a regulatory filing.
According to Yonhap News Agency, its sales rose 39.9 percent to 1.66 trillion won, marking the largest quarterly record. Operating income for the three-month period ended September soared 115.3 percent on-year to 728.8 billion won, from 338.6 billion won a year ago. The operating profit was 27.5 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Samsung Biologics attributed the sharp earnings growth to increased utilization of its production facilities under large-scale contract development and manufacturing organization (CDMO) deals. "Our quarterly sales hit an all-time high, driven by expanded production across Plants 1 through 4, higher biosimilar sales and favorable foreign exchange rates," the company said.
Samsung Biologics has signed a series of CDMO contracts with global pharmaceutical companies this year worth a combined 5.2 trillion won, nearly matching last year's full-year order total of 5.4 trillion won.