Celltrion confident of meeting fourth-quarter sales target despite falling exchange rates, says in shareholder letter

[Financial News] Celltrion is stepping up efforts to meet its annual performance targets, aiming for operating profit of at least 600 billion won in the fourth quarter of this year. Having met its quarterly operating profit targets in sequence through the third quarter, the company plans to sustain its growth in the remaining quarter. It also reaffirmed its policy of returning one-third of net income to shareholders through cash dividends or treasury-share cancellations.
Celltrion said in a shareholder letter on the 19th that it had met all its quarterly targets for this year: operating profit of 300 billion won in the first quarter, 400 billion won in the second, and 500 billion won in the third. Its fourth-quarter target is operating profit of at least 600 billion won.
Despite external factors such as the recent fall in exchange rates, Celltrion currently expects to have little difficulty meeting its fourth-quarter target. However, as quarterly results have yet to be finalized, it said it would closely monitor revenue realization and changes in market conditions for the remainder of the period.
To meet its targets, Chairman Seo Jung-jin will also inspect global sales operations on the ground. In early October, he chaired a meeting attended by about 80 people, including representatives of local subsidiaries in key markets such as North America, Europe, Asia and South America, as well as sales executives from headquarters, and reviewed sales performance and business outlooks. The meeting was held in Uzbekistan, an intermediate hub for the various regions. From mid-October, Seo plans to visit key global markets in person to review sales conditions in each country and encourage efforts to meet performance targets.
Celltrion said it would also focus on building a foundation for sustainable growth, rather than stopping at short-term performance targets. Its plan is to strengthen its profit-growth structure by securing future growth drivers through new drug development, efficiently using its research and development (R&D) budget, reducing manufacturing costs and improving productivity.
It also reaffirmed its shareholder-return policy. The company will maintain its existing principle of returning one-third of net income through cash dividends or treasury-share cancellations, and decide on the specific method of returning value after gathering shareholders' views. The aim is to ensure that the value created through corporate growth leads to greater shareholder value.
In the letter, Celltrion emphasized, "We will continue to focus our efforts on meeting our performance targets for the rest of this year and maintain shareholders' trust through continued profit growth and the implementation of our shareholder-return policy."

[email protected] Jung Sang-hee Reporter