GC Green Cross, Q2 Operating Profit 11.1 Billion KRW... 28.8% Decrease YoY

Sales Reach 387.6 Billion KRW, Up 7.7%

[Asia Economy Reporter Kim Ji-hee] GC Green Cross announced on the 30th that its operating profit for the second quarter of this year, based on consolidated financial statements, recorded 11.1 billion KRW, a 28.8% decrease compared to the same period last year. During the same period, sales amounted to 387.6 billion KRW, showing a provisional increase of 7.7%.

On a separate basis, sales were 293.8 billion KRW, showing a slight increase of 0.2% compared to the same period last year. The company explained that this was the result of offsetting the gap caused by the termination of contracts for externally sourced vaccines through the expansion of vaccine overseas business and domestic prescription drug sales.

In particular, overseas sales of the core vaccine business recorded 61.4 billion KRW in the second quarter alone, showing a high growth rate of 61.3% compared to the same period last year. GC Green Cross expects the favorable trend in vaccine sales to continue in the second half of the year with the addition of domestic influenza vaccine sales.

For domestic prescription drugs, self-developed products such as Davidoo and Neurapec showed strong performance, recording a sales growth rate of 24.5%. Additionally, quarterly sales of Hunterase, a treatment for rare diseases, reached 11 billion KRW, an 18.4% increase compared to the same period last year.

According to these operating results, the gross profit margin on a consolidated basis improved by 1.2 percentage points compared to the second quarter of last year. However, cost concentration in advertising expenses, freight charges, and other costs affected the quarterly profit indicators. A GC Green Cross official stated, “As expected at the beginning of the year, there are fluctuations in quarterly sales and expenses, but a clear improvement in performance is expected on an annual basis.”