Celltrion (068270) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly sales of KRW 874.7 billion in 2Q24, up 66.9% year-over-year, driven by strong biosimilar growth.

• Revenue for H1 2024 reached ₩1,611.7B, up from ₩1,121.5B year-over-year, with growth in both bio and chemical pharmaceuticals.

• Operating profit declined 60.4% YoY to KRW 72.5B in 2Q24 and to ₩87.9B for H1 2024, reflecting merger-related amortization and higher SG&A.

• Net profit rose to KRW 78.5B in 2Q24, but H1 2024 net income was ₩99.2B, down from ₩318.0B YoY, impacted by higher costs and amortization.

• Completed the merger with Celltrion Healthcare in December 2023, consolidating operations and resources.

Financial highlights

• Sales: KRW 874.7B in 2Q24 (+66.9% YoY, +18.7% QoQ); H1 2024 revenue ₩1,611.7B.

• Operating profit: KRW 72.5B in 2Q24 (-60.4% YoY); H1 2024 operating income ₩87.9B.

• Gross profit: KRW 367.8B in 2Q24; H1 2024 gross profit ₩674.5B.

• Net profit: KRW 78.5B in 2Q24; H1 2024 net income ₩99.2B.

• Biopharmaceuticals sales up 55.7% YoY; new biosimilars up 77.4% YoY.

Outlook and guidance

• 2024 sales guidance maintained at KRW 3.5 trillion.

• SG&A to remain at ~30% of sales for the year.

• COGS ratio expected to improve to mid-20% by end of 2025 as inventory mix normalizes.

• Management expects continued growth in bio and chemical pharmaceuticals, leveraging the expanded global network post-merger.

• Operating profit expected to improve in 2H24 as merger-related amortization impact subsides.