Kyeongdong Pharmaceutical succeeded in improving its performance for two consecutive quarters due to the rapid stabilization of the sales diversification system introduced at the beginning of the year.
On the 15th, Kyeongdong Pharmaceutical announced that its operating loss on a separate basis for the third quarter was 1.4 billion KRW, reducing the deficit by more than 2 billion KRW compared to the previous quarter. During the same period, sales amounted to 38.7 billion KRW, and net profit was 2 billion KRW.
Kyeongdong Pharmaceutical's performance deteriorated in the first quarter of this year due to temporary cost increases from sales diversification and delays in the sales network transition. From the second quarter, the sales network was quickly reorganized and stabilized, significantly reducing the quarterly deficit.
Sales diversification can reduce the burden of operating an in-house sales organization, enabling efficient management of the sales team through labor cost reduction and organizational flexibility. Additionally, expanding the sales network ultimately can lead to increased sales. However, since the transition and stabilization of the sales network take time, temporary cost increases and a reduction in scale are experienced.
A Kyeongdong Pharmaceutical official stated, "The sales diversification system stabilized faster than internally expected, and performance has been improving since the second quarter. We expect to turn a profit in the fourth quarter." They added that they will drive further performance improvements through various methods such as specializing in products defending against price cuts, streamlining production management systems, and launching new businesses.
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