Sales Up 11.1%, Operating Profit Up 20.3%
Dongkook Pharmaceutical achieved its highest-ever sales performance last year.
According to the Financial Supervisory Service's electronic disclosure system on the 7th, Dongkook Pharmaceutical recorded consolidated sales of 812.2 billion KRW and operating profit of 80.4 billion KRW last year. These figures represent increases of 11.1% and 20.3%, respectively, compared to the previous year. Since surpassing 400 billion KRW in sales in 2018, Dongkook Pharmaceutical has achieved 'doubling' of sales in six years. Last year's operating profit was the second highest following 84.7 billion KRW in 2020.
This is attributed to improved efficiency in selling and administrative expenses due to increased sales. In particular, diversification of distribution channels in the healthcare business division has contributed to profitability improvement. Dongkook Pharmaceutical plans to continue its growth by securing future pipelines through open innovation and developing and launching new products accordingly.
By business division, balanced growth was observed across all sectors including OTC (over-the-counter) business, ETC (ethical drugs) business, healthcare business, overseas business, and Dongkook Life Science (subsidiary).
The OTC business division maintained growth despite a challenging market environment, driven by demand generation for existing brands and high growth in general product categories. Brands such as Insadol, Madecassol product lines, Caritopoten, and general product groups showed double-digit growth rates.
In the ethical drugs business division, growth continued despite last year's generic drug price cuts and other challenging factors. Organizationally, the company expanded its presence in general hospitals and emphasized expertise by subdividing the marketing team. The establishment of the aesthetic business division aimed at continuous growth and structural improvement was initiated. New products related to chronic diseases, musculoskeletal, urology, central nervous system (CNS), gastrointestinal combination drugs, and aesthetics are launched annually to expand treatment areas.
In the healthcare business division, based on the pharmaceutical company's heritage and technology, consumer-friendly products were introduced through diverse distribution channels in beauty (cosmetics), daily health, and health food sectors. Starting this year, the company plans to expand online and overseas businesses and strengthen 'total healthcare group' branding through portfolio diversification. Particularly in the beauty sector, the dermocosmetic brand 'Centellian24' has established a diverse lineup tailored to individual skin concerns.
The daily health sector continues its strategy of expanding daily necessities under OTC brands. It is strengthening brand competitiveness centered on Sensian, Madeca, and Dentrix, while increasing consumer touchpoints through online and offline distribution channels. The health food business sector's nutraceutical-based 'MyFit' surpassed cumulative sales of 20 billion KRW.
The global business division, responsible for overseas exports, reorganized its business from the perspectives of markets and customers. Key products such as the general anesthetic Propofol injection and the antibiotic raw material Teicoplanin are strengthening their market positions in strategic markets. Sales growth is being prepared through business expansion in the Latin American market. Dongkook Life Science, which was listed on KOSDAQ last month, recorded sales of 131.8 billion KRW, a 9.7% increase compared to the previous year. Operating profit is expected to increase by 39.7% to 11.9 billion KRW.
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