Samsung Biologics (207940) Q2 2024 earnings summary

Executive summary

• Achieved KRW 1,157B in consolidated revenue and KRW 435B in operating profit for Q2 2024, with operating margin at 37.6% and strong YoY growth across all business segments.

• 2024 H1 consolidated revenue was KRW 2.10 trillion, with operating profit of KRW 655.8 billion.

• On track to surpass KRW 4T in annual revenue for the first time in Korea's pharmaceutical industry, driven by robust contract wins and biosimilar approvals.

• Operates in CDMO and biopharmaceutical development/commercialization, with global leadership in antibody drug manufacturing and biosimilars.

• Major investments include ongoing construction of a fifth plant and expansion into mRNA, ADC, and cell/gene therapy fields.

Financial highlights

• Q2 2024 consolidated revenue rose 34% YoY to KRW 1,157B; operating profit up 71% YoY to KRW 435B; EBITDA margin reached 50.4%.

• 2024 H1 revenue: KRW 2.10 trillion; operating profit: KRW 655.8 billion; net income: KRW 497.4 billion.

• Samsung Bioepis posted 107% YoY revenue growth and 514% YoY operating profit growth, boosted by milestone payments; excluding milestones, revenue and OP grew 27% and 22%.

• Separate (standalone) revenue and operating profit grew 27% and 30% YoY, respectively, supported by full utilization of P1-P3 and ramp-up of P4.

• Net profit for Q2 2024 reached KRW 318B, up from KRW 185B in Q2 2023.

Outlook and guidance

• Annual revenue guidance maintained at 10-15% YoY growth, with continued ramp-up of P4 and biosimilar expansion expected to drive 2H performance.

• Plans to complete 5th plant (180,000L capacity) by April 2025, part of a KRW 7.5 trillion investment through 2032.

• Expanding into mRNA, ADC, and cell/gene therapy, with global market growth expected in CDMO and biosimilars.

• Growth in separate business expected to continue in 2H, supported by improving P4 utilization.

• 2025+ dividend policy to consider FCF, targeting ~10% payout.