Dong-A Socio Holdings, 1Q Sales 223.3 Billion KRW... Operating Profit Turns Negative

[Asia Economy Reporter Lee Chun-hee] Dong-A Socio Holdings recorded sales of 223.3 billion KRW and an operating loss of 2 billion KRW in the first quarter of this year.

Dong-A Socio Holdings announced on the 4th that its consolidated operating (provisional) results for the first quarter showed sales of 223.26 billion KRW, an operating loss of 2.01 billion KRW, and a net loss of 6.841 billion KRW. Compared to the same period last year, sales increased by 16.2%, but both operating profit and net profit turned to losses.

The company stated, "Operating profit turned to a loss as marketing (selling and administrative expenses) costs to expand sales were proactively executed in the first quarter," and added, "Sales and operating profit are expected to gradually increase this year."

Looking at each subsidiary, Dong-A Pharmaceutical, a company specializing in over-the-counter (OTC) drugs, recorded sales of 114.8 billion KRW, a 20.6% increase compared to the same period last year, with growth across all sectors including Bacchus, OTC drugs, and health functional foods. However, operating profit decreased by 13.7% to 5.1 billion KRW due to concentrated selling and administrative expenses. Net profit also decreased by 9.2% to 3.7 billion KRW.

STGen Bio, a company specializing in biopharmaceuticals, recorded sales of 3.9 billion KRW, a 17.9% decrease compared to the same period last year. Dong-A Socio Holdings explained the sales decline by stating, "Since the contract manufacturing organization (CMO) business is the main focus, there is quarterly volatility." Operating and net losses continued but both narrowed. Operating loss was 5.9 billion KRW in the same period last year but recorded a 3.4 billion KRW loss this quarter, and net loss decreased from 5.7 billion KRW to 3.6 billion KRW. The company added, "Cost ratio is improving due to overall process improvements," and "Sales growth and operating profit turnaround to black are expected this year compared to last year."

Yongma Logistics, a logistics specialist company, recorded sales of 77.1 billion KRW, an operating loss of 1.2 billion KRW, and a net loss of 1.3 billion KRW. Dongchunsu, a bottled water specialist company, announced sales of 7.7 billion KRW, operating profit of 500 million KRW, and net profit of 400 million KRW.