Dong-A Socio Holdings, 2Q Sales 261 Billion KRW... Operating Profit Down 22.6%

[Asia Economy Reporter Chunhee Lee] Dong-A Socio Holdings recorded sales of 261 billion KRW and operating profit of 14.2 billion KRW in the second quarter of this year.

Dong-A Socio Holdings announced on the 9th that its consolidated operating (preliminary) results for the second quarter were sales of 261.043 billion KRW, operating profit of 14.229 billion KRW, and net profit of 8.943 billion KRW. Compared to the same period last year, sales increased by 20.2%, but operating profit and net profit decreased by 22.6% and 43.8%, respectively. However, compared to the previous quarter when operating profit and net profit were in the red, the company succeeded in turning a profit.

The company explained, "Second-quarter sales achieved the highest quarterly sales since the transition to a holding company due to balanced sales growth across major subsidiaries," and added, "Operating profit decreased compared to the same period last year due to an increase in cost ratio caused by rising raw material prices and concentrated marketing expenses (selling and administrative expenses) aimed at expanding annual sales."

Looking at each subsidiary, Dong-A Pharmaceutical, a company specializing in over-the-counter (OTC) drugs, recorded sales of 145.1 billion KRW, a 27.1% increase compared to the same period last year, with sales growth across all sectors including Bacchus, OTC drugs, and health functional foods. Operating profit also increased by 32.8% to 20.1 billion KRW.

STGen Bio, a biopharmaceutical company, recorded sales of 5.4 billion KRW, a 37.2% decrease compared to the same period last year. Dong-A Socio Holdings explained the sales decline was due to changes and deferrals in the contract development schedule. Operating loss continued with a deficit of 1.3 billion KRW.

Logistics specialist Yongma Logistics recorded sales of 145.1 billion KRW and operating profit of 20.1 billion KRW. Dongchunsu, a bottled water specialist company, reported sales of 9.1 billion KRW and operating profit of 500 million KRW.