GC Cell, 236.1 Billion KRW in Sales Last Year... Operating Profit Up 22%

GC Cell logo [Photo by GC Cell]

[Asia Economy Reporter Lee Chun-hee] GC Cell reported a 40.3% increase in consolidated sales to 236.12 billion KRW last year compared to the previous year, and operating profit also rose by 21.8% to 44.282 billion KRW, according to a preliminary disclosure on the 9th. However, net profit for the period decreased by 19.6% to 24.169 billion KRW.

The company evaluated that "the remarkable progress of the specimen testing business, which is a cash cow, stood out." Due to the impact of the COVID-19 pandemic, sales from the specimen testing business increased by 18.5% compared to the previous year, and the bio logistics business also grew by 54.5%, driving sales growth. Additionally, after Green Cross LabCell merged with Green Cross Cell in November 2021 to become GC Cell, the addition of cell therapy and contract development and manufacturing organization (CDMO) businesses contributed to the growth trend.

Regarding the increase in operating profit but decrease in net profit, the company stated, "Operating profit increased by realizing economies of scale through the merger," but "net profit decreased due to increased volatility in financial markets such as rising interest rates and exchange rates."

A GC Cell official said, "Last year was the inaugural year as GC Cell, and despite difficult market conditions, we were able to achieve favorable results," adding, "This year, we plan to present a multifaceted blueprint for GC Cell's leap forward by recruiting global experts in the pharmaceutical and bio fields."

James Park, Newly Appointed CEO of GC Cell [Photo by GC Cell]

GC Cell plans to focus on expanding its market through strengthening its global network, sales, and business development under the leadership of the appointed CEO James Park, who will be officially appointed after procedures such as the regular shareholders' meeting next month. In terms of research and development (R&D), the strategy is to elevate everything from R&D to clinical design and development plans to global standard levels, centered on the newly appointed Chief Technology Officer (CTO) Kim Ho-won, to strengthen global competitiveness.

However, GC Cell also noted that the Q4 performance last year is based on consolidated GC Cell figures after the merger, and the Q4 2021 data is based on consolidated figures for GC Cell and Green Cross Cell from November to December after the merger, so direct comparisons with the previous quarter and the same period last year may differ.

Meanwhile, GC Cell did not pay dividends at the end of 2021 due to the merger impact but announced that last year it will pay a cash dividend of 350 KRW per common share equally to enhance shareholder value.