Impact of Cost Ratio Reduction Due to Increased Factory Operating Rate... Operating Profit Up 139% Year-on-Year
[Asia Economy Reporter Seo So-jung] Samsung Biologics recorded strong performance as its cumulative sales and operating profit for the third quarter of this year surpassed the total sales and operating profit of the previous year.
Samsung Biologics (CEO Kim Tae-han) announced on the 21st that its sales for the third quarter reached 274.6 billion KRW, and operating profit was 56.5 billion KRW, marking increases of 49% and 139% respectively compared to the same period last year.
The cumulative results up to the third quarter showed sales of 789.5 billion KRW and operating profit of 200.2 billion KRW, exceeding last year's total sales of 701.6 billion KRW and operating profit of 91.7 billion KRW, due to a decrease in cost ratio from increased factory utilization rates.
Gross profit margin and operating profit margin rose by 6 percentage points and 8 percentage points respectively compared to the same period last year, maintaining solid profitability at 32% and 21%.
Compared to the previous quarter, sales decreased by 33.1 billion KRW due to a slight drop in sales volume caused by reduced utilization rates in the second quarter according to the annual production plan, and operating profit decreased by 24.6 billion KRW due to sales decline and increased selling and administrative expenses.
Samsung Biologics maintains a stable financial position with assets of 6.1372 trillion KRW, equity of 4.4988 trillion KRW, and liabilities of 1.6384 trillion KRW as of the third quarter, resulting in a debt ratio of 36.4% and a borrowings ratio of 13.2%.
In August, Samsung Biologics announced plans to expand its Plant 4, with a groundbreaking ceremony scheduled for the end of this year and partial production expected to begin by the end of 2022.
Additionally, at the end of this month, the company will open a Contract Development Organization (CDO) research and development (R&D) center in San Francisco, the largest bio-cluster in the United States, to actively enter the global market and fully implement a new business model linking research (CRO), development (CDO), and manufacturing (CMO).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
