Samsung Biologics Reports First Quarter 2022 Financial Results

Samsung Biologics, the world’s leading contract development and manufacturing organization, announced strong financial results for the first quarter of fiscal year 2022.

John Rim, CEO of Samsung Biologics, stated, “Samsung Biologics’ strong start to the 2022 fiscal year was driven by building momentum around our long-term growth strategy and expanding capacity. Our first-quarter financial performance demonstrates a significant and sustained level of customer demand in our services and capabilities. Turning to the present and future, Samsung Biologics has also committed to making sustainability a key component of the way we work and engage with our partners and communities. In our mission to build a healthier future for all while creating enduring and sustainable value, we are investing in initiatives to mitigate the risks of climate change in the greater areas we impact.”

FIRST QUARTER 2022 RESULTS

Samsung Biologics demonstrated strong operational excellence and business agility in the first quarter with earnings exceeding initial projections.

First quarter 2022 revenue was KRW 511.3 billion, an increase of 96% from KRW 260.8 billion reported for the first quarter in the previous year, attributable to the expansion of product sales and the increasing exchange rates amid stable operations of Plants 1, 2, and 3.

First quarter 2022 operating profit was KRW 176.4 billion, 137% higher than the prior-year period due to steady sales growth and an increase in the operating rate at Plant 3.

First quarter 2022 net profit reached KRW 146.9 billion, an increase of KRW 85.9 billion from KRW 61.0 billion in the first quarter a year ago, and first quarter 2022 operating margin was 35%.

[KRW billion]

FISCAL YEAR 2022 OUTLOOK

Samsung Biologics’ Plant 4 construction is expected to be partially operational by October 2022 to support 6 X 10KL production capacity. Upon its full completion in mid-2023—six months ahead of schedule—the combined capacity of all plants is expected to total 620KL, the world’s largest biomanufacturing capacity at a single site.

As part of its future growth plan, the company is also in the process of securing an additional 350,000m2 of land for its second Bio Campus, which will be 30% larger than the size of the current site.

Alongside our focus on growth and expansion, Samsung Biologics will continue to prioritize its ESG commitments by investing in practices and technologies that will reduce and potentially eliminate GHG emissions, while participating in various climate change initiatives, such as the Sustainable Markets Initiative, in the lead up to COP27.

Samsung Biologics will also be closely monitoring, identifying, and providing data for each of its biopharmaceutical manufacturing plants through its Carbon Disclosure Project (CDP) initiative with Task Force on Climate-Related Financial Disclosures (TCFD) to determine risks and opportunities on climate change as well as the financial impact to translate these data into actions.