Celltrion posts first W500b quarterly operating profit

High-margin biosimilars, lower costs drive third straight quarter of record earnings

Celltrion broke the 500 billion won ($374 million) quarterly operating profit mark for the first time in the third quarter, as high-margin biosimilars and lower costs powered another record performance.

According to Celltrion on Monday, it posted preliminary consolidated revenue of 1.5 trillion won and operating profit of 510 billion won for the July-to-September period, up 45.8 percent and 69.2 percent, respectively, from a year earlier, marking record-high earnings for the third consecutive quarter. Its operating margin also rose 4.7 percentage points on-year to 34 percent.

The biosimilar giant had set quarterly operating profit targets of 300 billion won for the first quarter, 400 billion won for the second and more than 500 billion won for the third in its business outlook released earlier this year.

Celltrion exceeded each target based on improving product mix with higher-margin next-generation biosimilars accounting for a growing share of sales, alongside continued efforts to streamline production and lower costs.

According to the company, sales expanded across its established and newer product portfolios in major markets, including Europe and the United States. Celltrion noted its direct-sales infrastructure, which is built around established products, has increasingly supported the commercial rollout of newer biosimilars.

Looking ahead to the fourth quarter, the firm said it expects its growth momentum to continue on the back of expanding sales and a more profitable product mix. Celltrion's allergy medication biosimilar Omlyclo, which launched in the US in October as the first biosimilar of its kind in the market, is projected to contribute to Celltrion's fourth quater earnings.

“Surpassing 500 billion won in quarterly operating profit for the first time and exceeding our quarterly profit targets for three consecutive quarters show our ability to execute our growth strategy,” a Celltrion official said.

“We will continue to improve our earnings quality by expanding the share of high-margin next-generation products and optimizing costs while leveraging growth drivers such as the US launch of Omlyclo and increased supply in Europe to meet our fourth-quarter and full-year business targets.”