L&K Biomed Reports Operating Profit of 2.1 Billion KRW in H1... "Two Consecutive Quarters of Profit"

Spine implant specialist L&K Biomed announced on the 16th that it achieved consolidated sales of 15.7 billion KRW, operating profit of 2.1 billion KRW, and net profit of 2.0 billion KRW in the first half of this year, marking two consecutive quarters of profitability following the first quarter.

According to L&K Biomed's semi-annual report, sales in the first half of this year increased by approximately 7.4 billion KRW, or about 90%, compared to the same period last year. Operating profit rose by 9.5 billion KRW during the same period. With operating profit turning positive, the interest coverage ratio reached 1.7 times, demonstrating sufficient debt repayment capability through this performance. The company successfully completed a capital increase last month, which had been underway. Most of the convertible bonds issued in July 2021 were also repaid, and the debt ratio, which stood at 318% as of the end of June, is expected to fall below 70% by the end of the third quarter this year.

By securing such financial stability, the company expects to focus all its capabilities on marketing going forward, a company representative stated.

An L&K Biomed official explained, “The increase in sales from the U.S. subsidiary due to the lifting of COVID-19 restrictions in the first half of this year drove the improvement in performance, and company-wide cost reduction efforts also contributed to the performance improvement. The performance improvement will continue, and especially from the second half of this year, with the launch of new products, we expect a quantum jump in performance next year.”

Meanwhile, the company successfully completed a paid-in capital increase worth 26 billion KRW last month through a subscription offer to existing shareholders and additionally listed new shares on the 11th of this month. The issue price of the new shares was 3,980 KRW. A total of 6,524,000 new shares were issued. The number of excess subscription shares was counted at 925,326, and the subscription rate recorded was 102.8%.

The funds raised through the paid-in capital increase will be used for the repayment of convertible bonds and for a large-scale case study to commercialize the curved height-expandable cage for lateral lumbar interbody fusion surgery, the “AccelFix-XTP.” The AccelFix-XTP is the world’s first curved height-expandable cage that can be used for both lateral lumbar interbody fusion (LLIF) and anterior-to-psoas lumbar interbody fusion (ATP).

A company representative said, “We thank the investors who actively participated in and showed interest in L&K Biomed’s paid-in capital increase. We are pleased that the market has sufficiently evaluated the company’s growth potential and business viability, and through the commercialization of AccelFix-XTP, we will become a global mid-sized spine implant specialist company.”