Celltrion (068270) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly sales of KRW 874.7 billion in 2Q24, up 66.9% year-over-year and 18.7% sequentially, driven by strong growth across all biosimilar products.

• Completed merger with Celltrion Healthcare on December 28, 2023, integrating R&D, manufacturing, and global sales into a unified structure.

• Expanded direct sales in the US and Europe, shifting from indirect to direct distribution for all major biosimilars.

• Maintained leadership in biosimilars with new product launches and regulatory approvals in key markets.

• Net profit rose to KRW 78.5 billion, with a net margin of 9.0%, reflecting improved sales but impacted by higher costs and amortization.

Financial highlights

• Sales: KRW 874.7 billion (+66.9% YoY, +18.7% QoQ); highest ever for the second consecutive quarter.

• Operating profit: KRW 72.5 billion (-60.4% YoY, +370.8% QoQ); OP margin at 8.3%.

• Gross profit: KRW 367.8 billion; gross margin at 42.1% (up from 41.6% in 1Q24).

• Net profit: KRW 78.5 billion; net margin at 9.0%.

• Biopharmaceuticals sales up 55.7% YoY; new biosimilars up 77.4% YoY.

Outlook and guidance

• 2024 sales guidance maintained at KRW 3.5 trillion.

• SG&A to remain at ~30% of sales for the year.

• COGS ratio expected to improve to mid-20% by end of 2025 as inventory mix normalizes.

• Plans to expand biosimilar and new drug portfolios, targeting additional regulatory approvals in the US, EU, and Asia.

• Focus on increasing direct sales in North America and Europe to improve profitability.