Kyungdong Pharmaceutical succeeded in achieving top-line growth and turning operating profit positive in the second quarter through stabilization of the marketing agency system and expansion of sales.
On the 16th, Kyungdong Pharmaceutical announced that its separate basis sales in the second quarter reached 49.1 billion KRW, a 21.2% increase compared to the same period last year. Operating profit for the same period was 800 million KRW, and net profit was 1.2 billion KRW, both turning positive.
On a consolidated basis, second quarter sales increased by 20.2% year-on-year to 49.7 billion KRW. Operating profit and net profit were 600 million KRW and 1.5 billion KRW, respectively.
The successful turnaround in this quarter’s performance is attributed to the stabilization of the marketing agency system introduced last year. In addition, various efforts to strengthen sales capabilities, such as securing new clients, have borne fruit. It is particularly encouraging that the company succeeded in turning a profit despite the unfavorable business environment in the pharmaceutical industry caused by medical sector strikes.
Along with strengthening sales capabilities, efforts to optimize cost spending and reduce costs were also key factors in improving performance. Profitability was secured through the advancement of work and production systems and expansion of in-house production capacity.
A company official stated, “We succeeded in turning a profit through stabilization of the marketing agency system and efficiency improvements in production and operations. In the second half of the year, we will continue the performance improvement trend by expanding sales of our main products, chronic disease treatments such as diabetes and hypertension, and strengthening marketing of newly launched health functional foods ‘HapidoPi’ and ‘WeaBime.’”
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