Samsung Biologics reports 129-billion-won third-quarter net

Samsung Electronics Vice Chairman Lee Jae-yong visits a Samsung Biologics plant in Songdo, Incheon, on Oct. 11. [YONHAP]

Samsung Biologics reported 129.2 billion won ($90.42 million) in net profit in the third quarter, down 2 percent on year, according to a consolidated earnings report released Wednesday.

Analysts had been expecting 176.9 billion in net profit.

Revenue jumped 94 percent to 873 billion, beating the 808.7-billion-won market consensus, while operating profit rose 94 percent to 324.74 billion won, beating the 237.6-billion-won average estimate.

Samsung Biologics is a contract manufacturing organization (CMO) that provides drug manufacturing services on a contract basis.

Samsung Bioepis, a subsidiary of Samsung Biologics, reported revenue that inched up 0.5 percent on year to 269.8 billion won in the third quarter. Its operating profit jumped 23 percent in the same period to 77.9 billion won.

Samsung Biologics recently started operation of its fourth plant, in Songdo, Incheon, which will have 620,000 liters in capacity when fully operational in 2023. It is the world’s largest single pharmaceutical manufacturing facility.

Samsung Biologics shares closed up 1.36 percent to 896,000 won on Wednesday. Eugene Investment & Securities has a 1 million won target price as of Monday.

The company’s on-year revenue and operating profit through 2025 are projected to grow 28 percent annually on the operation of its fourth plant, according to Kwon Hae-soon, an analyst at Eugene Investment & Securities.

BY JIN MIN-JI [jin.minji@joongang.co.kr]