Samsung Biologics(802,000 +1.52%)On the 26th, based on consolidated financial statements, last year, annual sales reached 1.16 trillion won and operating profit recorded 2928 billion won. Its annual sales exceeded 1 trillion won in 9 years since its founding in April 2011.
Sales surged 66.0% YoY and operating profit increased 219.3% YoY due to the increase in the utilization rate of plants 1-3. The operating margin rose to 25%, a significant improvement from 13% in 2019, depending on the effect of operating leverage. The operating leverage effect refers to the fact that when sales exceed a certain level in a business where a large portion of fixed costs is used, operating profit increases more than sales increase.
Sales in 2020 increased more than 12 times compared to 2015, when sales began to generate in earnest. The average annual sales growth rate for five years reached 66.4%. Last year, Samsung Biologics won orders of $1.78 billion, about 2.5 times the sales in 2019, including $627 million of GSK.
It is explained that even in the situation of the Corona 19 pandemic, the response through non-face-to-face real-time inspection and inspection was a major success in winning orders.
Sales in the fourth quarter achieved the highest quarterly performance ever. Increased factory utilization and contracted production of some COVID-19 treatments (CMO) were reflected in sales, recording 375.3 billion won, an increase of 36.7% compared to the third quarter. Operating profit was 92.6 billion won, a 63.9% increase from the previous quarter.
This significantly exceeded the market estimate (consensus) sales of 288.2 billion won and operating profit of 64.8 billion won.
Earlier, Samsung Biologics said at the online JPMorgan Healthcare Conference that it will focus its capabilities on efficient operation of production facilities and early orders for the 4th plant in 2021. It announced a plan to secure next-generation growth engines and super-differential competitiveness through expansion of production capacity and business diversification.
Reporter Minsoo Han [email protected]
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