Celltrion has surpassed 700 billion KRW in quarterly sales for the first time since its establishment.
On the 9th, Celltrion announced that it recorded consolidated sales of 736.98 billion KRW and an operating profit of 15.437 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 23.3%, but operating profit decreased by 91.5%. The company explained, "For the first time since its founding, quarterly sales exceeded 700 billion KRW, setting a new record high." However, "Operating profit was 15.4 billion KRW, reflecting temporary factors related to the merger that were already anticipated, such as increased cost of goods sold due to inventory consolidation and amortization of intangible assets."
The core business segment, the biosimilar business, achieved sales of 651.2 billion KRW, a 57.8% increase compared to the same period last year. With major biosimilar products growing evenly and driving sales growth, the company explained that if the effects of new product launches emerge in the future, sales growth and profit recovery are expected.
The third plant, scheduled to begin commercial production this year, is also expected to support Celltrion's growth momentum. With a capacity of 60,000 liters, once operational, Celltrion will have a total production capacity of 250,000 liters by combining the existing Plant 1 (100,000 liters) and Plant 2 (90,000 liters). The third plant is specialized in 'small-volume production of multiple product types' economically and is expected to start full-scale commercial production in the fourth quarter. In particular, it is anticipated to contribute to overall cost ratio improvement by having the capability to produce high-profit biosimilars with high expression efficiency of active substances from cells.
Celltrion expects further expansion in sales and profitability. By continuously depleting the inventory assets held by Celltrion Healthcare before the merger and producing products with improved cost of goods sold ratios, the cost of goods sold ratio, which was in the 50% range as of the first quarter, is expected to decrease to the 30% range by the end of the year. A lower cost of goods sold ratio will improve profitability, enable more aggressive overseas bidding, and lead to expanded opportunities for global market entry and accelerated growth.
A Celltrion official said, "Despite forecasts from the securities industry and others predicting a 'slow start and strong finish' performance this year due to the impact of last year's merger, we achieved the highest quarterly sales ever through growth in the core biosimilar business segment." He added, "With the successful establishment of Jimpentra in the U.S. market launched this year and the continued growth of existing products, this year will be a year in which Celltrion achieves its second leap forward."
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