Celltrion (068270.KS) is on track to surpass 4 trillion won in annual revenue and 1 trillion won in operating profit for the first time in 2025. The company would become the second Korean pharmaceutical and biotech firm to join the "4 trillion won revenue club," following Samsung Biologics (207940.KS), which achieved the milestone in 2024. This year, Celltrion plans to focus on maximizing profitability by concentrating its sales portfolio on high-margin product lines.
The company announced Friday that it expects fourth-quarter 2024 consolidated revenue of 1.28 trillion won and operating profit of 472.2 billion won. This represents a 20.7% increase in revenue and a 140.4% surge in operating profit compared to the same period a year earlier. Both figures would mark record quarterly highs. The operating profit margin is projected to reach 36.8%.
For full-year 2025, Celltrion forecasts revenue of 4.12 trillion won, up 15.7% year-on-year, and operating profit of 1.17 trillion won, up 136.9%. These projections slightly exceed market consensus estimates of 4.08 trillion won in revenue and 1.09 trillion won in operating profit.
"This is the first time we have released earnings guidance before quarter-end to enhance predictability and timeliness for investors," a Celltrion official said. "Despite applying conservative assumptions considering market volatility, the figures exceeded market expectations."
The earnings improvement stems from expanded sales of high-margin products and resolution of issues related to the merger with Celltrion Healthcare. According to the company, sales of high-margin new products including Remsima SC, Yuflyma, Vegzelma and Stekeyma grew by double digits quarter-on-quarter in Q4 2024, accounting for more than 60% of total revenue.
Issues that had weighed on results since the December 2023 merger with Celltrion Healthcare, including high-cost inventory depletion and development cost amortization, have been largely resolved. The cost of goods sold ratio improved to 36.1% in Q4, down approximately 3 percentage points from 39% in Q3. Earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to reach a record quarterly high of 538.9 billion won.
This year, the company will focus on improving operating margins rather than top-line growth. Accordingly, Celltrion lowered its annual revenue target for biosimilars and new drugs from 7 trillion won to 5.3 trillion won.
"This year, we will pursue aggressive bidding strategies centered on new products with high net margins and focus on substantial growth driven by high-margin product lines rather than volume-based top-line expansion," a company official said. "We will reduce the proportion of high-cost products and maximize profitability of high-margin product lines."
