Dong-A Pharmaceutical achieved its highest quarterly performance in the first earnings report released since the launch of the integrated legal entity this month. Cumulative revenue for the first three quarters of this year also reached an all-time high.
This result was driven by increased sales of products such as "Bacchus," led by the "Dr. Ice" boom, as well as external growth at Yongma Logistics. Dong-A Pharmaceutical plans to continue its growth trajectory by maximizing operational efficiency.
On the 27th, Dong-A Pharmaceutical disclosed that it recorded consolidated preliminary revenue of 431 billion won and an operating profit of 35.1 billion won for the third quarter of this year. These figures increased by 12.66% and 5.37%, respectively, compared to the same period last year.
On a cumulative basis for the first three quarters, revenue was 1 trillion 194.4 billion won, and operating profit was 93.2 billion won, up 12.91% and 13.90%, respectively, from the same period last year.
Compared to the performance of Dong-A Socio Holdings (now Dong-A Pharmaceutical), which previously served as the holding company, both quarterly revenue and cumulative revenue are at all-time highs. The company has shown a sustained growth trend since it first surpassed 400 billion won in quarterly revenue in the second quarter.
On a standalone basis, Dong-A Pharmaceutical recorded revenue of 227 billion won, up 13.4% year-on-year, driven by growth in its general pharmaceuticals business segment. Operating profit was 28.9 billion won, an increase of 1.4%.
The Bacchus business segment posted 88.8 billion won, up 2.5% year-on-year; the OTC (over-the-counter drugs, etc.) business segment recorded 72.6 billion won, a 27.2% increase; and the HTC (health functional foods, etc.) business segment reported 48.2 billion won, up 2.0%.
By key product, sales of Bacchus F, Dr. Ice, jelly, and others—excluding Bacchus D—totaled 60.4 billion won, recording a high growth rate of 24.3% compared to the same period last year.
Dermocosmetics also showed notable growth with revenue of 8.2 billion won, an increase of 36.6% year-on-year. However, selling, general and administrative expenses (SG&A) for the third quarter rose by 15.7% year-on-year to 83.5 billion won, slowing the pace of operating profit growth.
Yongma Logistics, a logistics specialist company, achieved revenue of 121.5 billion won, up 10.8% year-on-year, due to increased cargo volumes from existing clients and the acquisition of new clients. Operating profit was recorded at 2.7 billion won, a decrease of 57.9%. This was influenced by rising fuel costs and logistics auxiliary material costs due to external issues.
Btgene, a specialized company for biopharmaceutical CMO (contract manufacturing), recorded revenue of 24.9 billion won, down 20.9% year-on-year, due to the delay in shipments of commercialized products. Operating profit was 4.9 billion won, an increase of 168.3% compared to the same period last year.
This was influenced by improved cost ratios resulting from higher unit prices for shipped items this period. It is expected that Btgene's external scale will expand in the fourth quarter as its supply increases.
A Dong-A Pharmaceutical official stated, "We are facing cost burdens such as fuel and raw material costs due to the impact of the global environment," while adding, "We will maximize operational efficiency to ensure sustained growth."
Hana Securities expects Dong-A Pharmaceutical's revenue for this year to increase by 12.0% from last year to 1 trillion 601.6 billion won, and operating profit to rise by 13.2% to 110.7 billion won.
It estimated that next year's revenue will increase by 9.4% from this year to 1 trillion 752.1 billion won, and operating profit will grow by 10.2% to 121.9 billion won.
Kwon Tae-woo, a researcher at Hana Securities, forecasted that "while dermatological external preparations and Bacchus support existing consumer goods revenue, the expansion of overseas distribution networks is expected to act as an additional growth factor." He added, "Following this, Btgene's capacity expansion operations and increased order intake will continue, adding CDMO revenue growth to consumer goods."
in THEBIO
