Samsung Biologics 2022 earnings hit all-time high with W3tr sales

Korean contract manufacturer Samsung Biologics' earnings in 2022 hit all-time high, mainly because its biopharmaceutical unit was included in the consolidated financial result after a full acquisition early in the year.

Its sales almost doubled to 3 trillion won ($2.4 billion) from 1.56 trillion won in 2021, according to its regulatory filing on Friday. It logged 983.6 billion won in operating profit, up 83 percent from 537.3 billion won a year earlier.

The dollar figure above has been calculated based on dollar-won exchange rate as of Friday thus may not reflect the past exchange rates, which had impacts on their sales last year.

It is the first time a South Korean pharmaceutical company or biopharmaceutical firm has reached the 3 trillion won in annual sales.

The result comes thanks to the inclusion of earnings from Samsung Bioepis, its joint venture with US firm Biogen, in the statement. Samsung Biologics fully acquired Samsung Bioepis as a wholly owned subsidiary in April. In addition to the factor, Samsung Biologics attributed the improved earnings to new manufacturing contracts and increased operation rate of its manufacturing facilities. In 2022 alone, the company added 11 new contracts, amounting to a total of 1.78 trillion won.

Backed by new contracts and increased production in 2022, Samsung Biologics alone posted 2.4 trillion won of sales, with 968.1 billion won of operating profit, up 55 percent and 80 percent on-year, respectively.

In the fourth quarter of 2022 alone, Samsung Biologics set a new quarterly record by posting sales of 965 billion won, up 117 percent on-year. The company’s operating profit soared 142 percent to 312 billion.

Samsung Biologics said it would continue its growth by securing more biomanufacturing capacities to handle new contracts in the future.

The company is currently negotiating deals with 26 clients over 34 different products, which will help utilize the company's fourth plant. Samsung Biologics expects to complete construction of the fourth plant during the first half this year.

Samsung Biologics added it would invest an additional 7.5 trillion won in the next decade to expand its production capacity further within its second campus.

The company will also expand its portfolio by investing in new modalities, including antibody-drug conjugate, it added.

Meanwhile, Samsung Bioepis posted a total of 946 billion won of sales, with 38.8 billion won of operating profit in 2022, up 12 percent and 20 percent, respectively.