GC Green Cross, 3Q Sales of 465.7 Billion KRW... Record Highest Quarterly Sales Ever

[Asia Economy Reporter Chunhee Lee] GC Green Cross announced on the 1st that its preliminary Q3 earnings (based on consolidated financial statements) recorded quarterly record-high sales of 465.7 billion KRW. This represents an 11% increase compared to the same period last year.

Operating profit for the same period was 71.5 billion KRW, up 41% from the same period last year. This is the highest operating profit in the past 10 years, and the gross profit margin also increased by 5.8 percentage points to 39.8% compared to the same period last year. However, net income for the period decreased by 8.4% to 58.1 billion KRW.

A Green Cross official evaluated, "While increasing research and development (R&D) investment by 34.2%, we expanded the growth of our core vaccine and prescription drug sectors, thereby improving profitability."

Looking at each sector, sales were recorded as follows: blood products business 109.6 billion KRW, vaccines 104.3 billion KRW, prescription drugs 97.8 billion KRW, and consumer healthcare and others 65.6 billion KRW. In particular, the prescription drug business sector grew by 32.6%. This is analyzed as the effect of overseas performance of the rare drug Hunterase more than doubling. Domestic sales of influenza vaccines also showed strong performance with 92.5 billion KRW.

Consolidated listed affiliates that previously announced their earnings also posted solid results. GC Green Cross LabCell recorded record-high sales of 38.3 billion KRW and operating profit of 10.3 billion KRW due to the full-scale inflow of overseas technology licensing fees. GC Green Cross Wellbeing also showed improved performance due to growth in injectable sales and restructuring of the health functional food business. However, GC Green Cross MS showed somewhat sluggish results due to the impact of the diagnostic kit business.