Samsung Biologics reports Q4 & fiscal year 2023 financial results

Samsung Biologics announced robust financial results for the fourth quarter and fiscal year 2023.

“We have achieved another remarkable milestone with our consolidated operating profit surpassing KRW 1 trillion in the 12 years since our founding in 2011. Our unwavering commitment to customer-centric services and continuous innovation remains at the core of our mission, ensuring the delivery of high-quality biomedicines to patients worldwide,” said John Rim, CEO and President of Samsung Biologics. “Despite the challenging environment, we remain optimistic, anticipating continued growth driven by sustained partnerships, expanded capacity, and strategic portfolio diversification in the coming year.”

Fourth quarter & fiscal year 2023 results
In the fourth quarter of 2023, consolidated revenue recorded KRW 1.07 trillion, marking an 11.2% growth from KRW 965.5 billion in the same period from the previous year. This exceptional performance is attributed to the successful ramp-up of Plant 4 operation and a robust sales backlog. In 2023, Samsung Biologics accumulated contracts worth over USD 12 billion by expanding its partnerships with 14 of the top 20 global pharmaceutical companies.

For the full-year 2023, the company posted a record-high consolidated operating profit of KRW 1.11 trillion, up by 13.2% from KRW 983.6 billion in 2022. Consolidated revenue reached KRW 3.69 trillion, reflecting a 23.1% increase from the previous year. The outlook remains strong, with resilient business performance expected to drive a 10-15% annual growth in revenue for 2024.

On a standalone basis, Samsung Biologics recorded a revenue of KRW 2.94 trillion and operating profit of KRW 1.2 trillion in 2023. In the fourth quarter of 2023 alone, the company posted a revenue of KRW 827.9 billion and operating profit of KRW 334.0 billion.

Fiscal year 2024 outlook
Building on this momentum, Samsung Biologics plans to continue making strategic investments in expanding capacity and global reach, while enhancing capabilities to better meet clients’ evolving needs.

With Plant 4’s full operation, commenced in 2023 as previously committed, the increased production capacity is expected to gradually enhance its contribution to future revenue. Having successfully completed engineering run and Process Performance Qualification (PPQ), and obtained regulatory approval for large-scale production, Plant 4 is projected to contribute approximately 30% of drug substance manufacturing business revenue by 2025. Plant 5, the first facility of the company’s second Bio Campus, is set to begin operations in April 2025, five months ahead of its initial construction timeline.

To accommodate each client’s ever-evolving needs, Samsung Biologics introduced customized CMC solutions: three development packages designed to ensure maximum flexibility and meet clients’ goals per their development stage. The company’s newly launched development platforms, S-CHOsient™ and S-Glyn™, will also help ensure successful development with higher productivity and quality.

In an effort to diversify its business portfolio, the company’s separate antibody-drug conjugate (ADC) manufacturing facility is set to be cGMP-ready within 2024, enabling the exploration of innovative technologies for next-generation biomedicines. This aligns with investments the company has made through the Samsung Life Science Fund, supporting pioneering biotechs like AimedBio and Araris Biotech AG in ADC technology.

Samsung Biologics also continues to engage and drive action in the sustainability front. As a member of the Sustainable Markets Initiative’s Health Systems Task Force, Samsung Biologics, along with 13 other global public-private health system leaders, has committed to bringing practical solutions to decarbonizing healthcare supply chains. The company will further strengthen partnerships with suppliers to foster collaboration, while continuing to establish a concrete roadmap for ESG management. Recently, Samsung Biologics was awarded the EcoVadis’ Platinum Sustainability Rating, the highest recognition given, for the company’s sustainable management practices.
MB Bureau