[Asia Economy Reporter Lee Chun-hee] Samsung Biologics recorded a 'surprise performance' in the second quarter of this year with sales of 412.2 billion KRW and an operating profit of 166.8 billion KRW.
On the 27th, Samsung Biologics announced its provisional operating results based on the consolidated financial statements for the second quarter of 2021, reporting sales of 412.163 billion KRW and an operating profit of 166.76 billion KRW, achieving the highest quarterly performance to date. This significantly exceeded market consensus, with sales rising 33.9% compared to the same period last year and operating profit increasing by 124.5%.
The company analyzed that the increase in sales by 104.5 billion KRW from 307.7 billion KRW in the same period last year was due to the rise in the operating rate of the third plant following new product orders and the sales impact of COVID-19 related products. Operating profit also increased by 85.7 billion KRW compared to 81.1 billion KRW in the same period last year, driven by sales growth and the full-scale profit realization from the increased operating rate of the third plant.
Additionally, compared to the previous first quarter, sales and operating profit rose by 151.4 billion KRW (58.1% increase) and 92.5 billion KRW (124.5% increase), respectively, due to the sales recognition impact of COVID-19 related product production.
To respond to the rapidly increasing demand for biopharmaceuticals, Samsung Biologics began expanding its Songdo Plant 4 (256,000ℓ), which has the world's largest production capacity for a single plant, in August last year. Construction is progressing smoothly with partial operation targeted by the end of 2022 and full operation planned for 2023. Despite a considerable period remaining until the completion of Plant 4, the company is actively conducting order activities to complete orders early.
In addition, in May, Samsung Biologics signed a contract with Moderna for the production of finished COVID-19 vaccine drugs (DP) and plans to start production within the third quarter. It is also establishing mRNA vaccine drug substance (DS) production facilities targeting the first half of 2022. Through this, it is expected to provide end-to-end services capable of producing mRNA vaccines from DS to DP.
A company official stated, "Despite the challenging environment of the COVID-19 pandemic, we plan to focus our capabilities on the efficient operation of production facilities and early orders for Plant 4," adding, "We will continue efforts to bring an early end to the COVID-19 pandemic by ensuring stable and rapid supply of COVID-19 vaccines and therapeutics worldwide."
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