Amicogen, a bio-materials and healthcare specialized company (CEO Pyo Jjeo), announced on the 14th that its cumulative consolidated sales for the third quarter of this year recorded 116.7 billion KRW, a 3.34% decrease compared to the same period last year. Operating profit turned to a loss due to expenses incurred in the process of expanding new businesses and laying the foundation for future growth.
Amicogen headquarters' cumulative sales for the third quarter recorded 30.2 billion KRW, a 2.27% decrease compared to the same period last year, due to a temporary decline in special enzyme sales caused by clients' inventory adjustments and a decrease in ODM orders. Amicogen China’s third-quarter sales recorded 84.9 billion KRW, a 5.8% decrease compared to the same period last year, due to restructuring in the domestic animal farming industry and slow economic recovery in China.
An Amicogen official explained, “Although both Amicogen China and the headquarters experienced a temporary decrease in third-quarter sales, Amicogen China is expected to continue its growth with the peak season in the fourth quarter and economic recovery. The headquarters also expects recovery from the fourth quarter as the decline in special enzyme sales is a temporary phenomenon.”
He added, “The existing business divisions are recording operating profits, so once the new businesses in media and resin get on track, performance improvement will be fully underway.”
Meanwhile, Amicogen is improving its financial structure and securing liquidity through the recent sale and liquidation of non-core subsidiaries. Mediple has completed liquidation, Amicogen Pharma has passed the board resolution and is proceeding with liquidation procedures. Additionally, AP has completed the full sale of its shares, and Skinmed plans to complete its sale within November.
Park Cheol, CEO of Amicogen, said, “As major clients are in the process of depleting inventory and the economy is in the early stages of recovery, third-quarter performance was sluggish, but in the fourth quarter, headquarters sales are expected to regain growth through the recovery of the antibiotic market, overseas exports of healthcare materials, and domestic healthcare material market penetration.”
He continued, “Amicogen China is also expected to continue its growth with China’s economic recovery and entry into the peak season. This year, we plan to focus on improving profitability through the enhancement of inefficient work processes and the reorganization of non-core subsidiaries and business divisions. Although it is regrettable that new businesses have been delayed compared to the original plan, we will do our best to meet market expectations with visible results next year.”
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