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South Korea’s Celltrion said in a shareholder notice that it is focusing its capabilities on global sales to achieve fourth-quarter operating profit of 600 billion won (approximately $449.6 million) or more. Having met all of its quarterly targets set at the start of the year — 300 billion won in Q1, 400 billion won in Q2 and 500 billion won in Q3 — the company would top 1.8 trillion won (approximately $1.3 billion) in annual operating profit if it hits the Q4 goal. Chairman Seo Jung-jin reviewed performance with about 80 local subsidiary officials in Uzbekistan and will personally visit key markets from mid-month. The company will also maintain its existing principle of returning one-third of net profit through cash dividends or share buybacks.
Key Elements
South Korea’s Celltrion (068270) is staking its year on reaching fourth-quarter operating profit of 600 billion won (approximately $449.6 million) or more, taking direct charge of its global sales front. Having hit its quarterly targets without a single miss through the third quarter, the company aims to close out the year on target and complete its push into the 1.8 trillion won (approximately $1.3 billion) range in annual operating profit.
In a notice to shareholders on the 19th, the company said it is “concentrating all capabilities on achieving operating profit of 600 billion won or more in the fourth quarter as well, to fully deliver on this year’s promise.” Celltrion had earlier set quarterly operating profit targets at the start of the year of 300 billion won (approximately $224.8 million) for the first quarter, 400 billion won (approximately $299.8 million) for the second and 500 billion won (approximately $374.7 million) for the third, and met them all. Hitting the fourth-quarter goal would push annual operating profit above 1.8 trillion won.
On-the-ground reviews are continuing in pursuit of the target. Earlier this month, Celltrion Group Chairman Seo Jung-jin convened about 80 people — officials from local subsidiaries in key markets including North America, Europe, Asia and South America, plus headquarters sales executives — in Uzbekistan to review sales status and earnings outlooks firsthand. The company sees no major obstacles to meeting the fourth-quarter target for now, despite external variables such as the recent decline in exchange rates. From mid-month, Seo will visit key markets in succession to review sales conditions country by country and rally staff toward the targets.
| Period | Operating Profit Target |
|---|---|
| Q1 | 300 billion won |
| Q2 | 400 billion won |
| Q3 | 500 billion won |
| Q4 | 600 billion won or more |
| Full-year total | 1.8 trillion won or more |
Note: Full-year total assumes the Q4 target is met.
The shareholder return policy will also stay on its existing course. The company will keep its principle of returning one-third of net profit through cash dividends or share buybacks, while deciding the specific method after gathering shareholder input. It also plans to keep improving profitability by securing growth drivers through new drug development, spending its R&D budget efficiently, lowering manufacturing costs and raising productivity. The company stressed that this will establish a structure of sustainable earnings growth rather than one-off results.
The target comes as Celltrion broadens its portfolio from a biosimilars-centered business into new drug development. Product expansion in the U.S. market, including Zymfentra, and diversified revenue across Europe, Asia and South America are seen as underpinning results. Exchange-rate swings and global price competition in biopharmaceuticals, however, remain variables for fourth-quarter performance. Whether the company can prove its quarterly targets in actual numbers by year-end is expected to weigh considerably on its share price and investor sentiment.
