Dong-A Socio Holdings Reports Operating Profit of 37.8 Billion KRW Last Year, Down 38.6% YoY

Sales Surpass 1 Trillion Won

[Asia Economy Reporter Myunghwan Lee] Dong-A Socio Holdings announced on the 16th that its consolidated operating profit for last year was 37.8 billion KRW, down 38.6% from the previous year.

During the same period, sales increased by 14.9% to 1.0131 trillion KRW, achieving sales of over 1 trillion KRW. However, net profit decreased by 55.4% to 27 billion KRW.

Dong-A Socio Holdings R&D Center. [Photo by Dong-A Socio Holdings]

Looking at the performance of major subsidiaries, Dong-A Pharmaceutical recorded sales of 543 billion KRW, up 24.2% year-on-year, and operating profit of 67.1 billion KRW, also up 24.2%. Dong-A Socio Holdings explained that sales increased across all sectors, including the Bacchus business division, over-the-counter (OTC) pharmaceutical division, and health and wellness division. In particular, sales of the children's fever reducer 'Champ' rose 163.4% year-on-year to 13.4 billion KRW. Sales of 'Orthomol,' a premium multivitamin officially imported by Dong-A Pharmaceutical, also increased by 131% to 65.5 billion KRW compared to the previous year.

Yongma Logistics, a logistics specialist company, increased sales by 13.3% year-on-year to 345.3 billion KRW by attracting new clients. However, operating profit decreased by 48.7% to 6.6 billion KRW due to an overall increase in logistics costs, which raised the cost ratio.

STGen Bio, a biopharmaceutical company incorporated as a subsidiary of Dong-A Socio Holdings since last year, saw sales decline by 30.9% year-on-year to 27.9 billion KRW due to changes and carryovers in the production schedule of its contract manufacturer. In terms of profitability, the deficit widened compared to the previous year, recording an operating loss of 15.7 billion KRW.

Dongchunsu, a bottled water specialist company, posted sales of 32.9 billion KRW, up 2.2% from the previous year. However, operating profit fell 53.8% year-on-year to 1 billion KRW due to rising raw material costs.

A representative of Dong-A Socio Holdings stated, "Sales increased year-on-year due to balanced growth among major subsidiaries," but added, "STGen Bio, which was accounted for using the equity method in 2021, was included as a consolidated subsidiary in 2022, leading to decreases in operating profit, profit before income tax, and net profit."