Celltrion is expected to surpass 4 trillion won in annual sales and 1 trillion won in operating profit this year for the first time since its founding.
Celltrion said on the 31st that, on a consolidation basis, fourth-quarter sales are tentatively tallied at 1.2839 trillion won, up 20.7% from a year earlier, and operating profit at 472.2 billion won, up 140.4% from a year earlier.
To promptly and transparently inform investors of its performance, the company has been compiling and releasing preliminary results ahead of the official earnings announcement starting in the first quarter this year.
The company said it achieved record quarterly sales and operating profit simultaneously, with an operating margin expected to be 36.8%.
If the fourth-quarter guidance is confirmed, annual sales this year are expected to reach 4.1163 trillion won, up 15.7% from a year earlier, and operating profit 1.1655 trillion won, up 136.9%.
Celltrion said the result was driven by steady growth in existing flagship products and the rapid sales traction of high-margin new products that have settled into the global market. According to the company, new products such as the autoimmune disease treatment Remsima SC (U.S. product name Zymfentra), Yuflyma, the anticancer drug Vegzelma, and Steqeyma posted double-digit growth in the fourth quarter.
However, some new products were launched globally later than initially expected. On this, the company said, "The impact includes patent settlements to ensure stable product supply," and added, "As a result, the annual improvement effect on results this year appeared somewhat limited, but we expect to show strong growth next year by expanding market share."
The company plans to steadily pursue a growth strategy to reduce the cost ratio and expand profitability.
As of the fourth quarter this year, the cost of sales ratio is tentatively 36.1%, down about 3 percentage points from the previous quarter (39%). Fourth-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) are tentatively tallied at 538.9 billion won, a record quarterly high.
The company said it will focus on solid growth centered on high-margin product groups starting next year. It plans to reduce the share of high-cost products and maximize the profitability of high-margin product groups.
This year, Celltrion completed a portfolio of 11 biosimilar product lines in major global markets and finalized the acquisition of a biopharmaceutical manufacturing plant in Branchburg, New Jersey, owned by Eli Lilly and Company. Starting next year, it plans to begin full-scale contract manufacturing organization (CMO) product supply and preparations for production of products bound for the United States.
Celltrion also announced a mid- to long-term strategy for its contract development and manufacturing organization (CDMO) business linked to securing a local U.S. production base. Celltrion and its U.S. subsidiary will handle capital expenditures and production infrastructure, while Celltrion BioSolutions, a CDMO-focused subsidiary established last year, will be dedicated to global sales and project management for the CDMO business using those facilities.