Samsung BioLogics in the black for Q1 as factories hum

Samsung BioLogics posted a profit in the first quarter compared to a loss a year earlier as the operating rate of its factories rose, the company announced Monday.

From January to March, the company saw revenue surge 65 percent to 207.2 billion won ($170 million) from 125.4 billion won a year earlier, and an operating profit of 62.6 billion won compared to an operating loss of 44.3 billion won in the first quarter last year.

The biopharmaceutical affiliate of Samsung Group posted a net profit of 39.1 billion won, up from a net loss of 38.5 billion won a year earlier.

Samsung BioLogics said the much-improved earnings were due to production of new biopharmaceutical products at its first factory and increases in sales of products made at its second plant.

The two factories’ operating rates were low in the first quarter of 2019 due to a slowdown, a required biennial maintenance period for biomanufacturing plants during which time the operating rate temporarily drops.

Even so, Samsung BioLogics reported its best-ever results last year, with revenue adding 30.9 percent to reach 706.1 billion won and operating profit surging 64.6 percent to 91.7 billion won.

Even with the coronavirus outbreak disrupting companies in many sectors, analysts have believed that Samsung BioLogics will report strong earnings this year due to increased demand for biopharmaceutical products and a general upswing in the global drug-making industry.

Samsung BioLogics has the largest biomanufacturing capacity in the world with 364,000 liters (96,160 gallons). The company believes its third biomanufacturing plant will reach maximum operation rate by 2022, which could lead to the construction of a fourth manufacturing facility.

Starting with the establishment of a contract development organization research center in San Francisco this year, Samsung BioLogics is looking to continue overseas expansion by targeting Europe, the eastern United States and China.

BY KO JUN-TAE [ko.juntae@joongang.co.kr]