Dong-A Socio Holdings Posts Q1 Operating Profit of 20.4 Billion Won, Up 31% Year-on-Year

Exterior view of Dong-A Socio Holdings headquarters. Photo by Dong-A Socio Holdings

Dong-A Socio Holdings announced on the 29th that its consolidated operating profit for the first quarter of this year reached 20.4 billion won, representing a 30.9% increase compared to the same period last year.

During the same period, sales rose by 7.7% to 328.4 billion won. Dong-A Socio Holdings explained that the main contributors to this performance were the external growth of its key subsidiaries.

Dong-A Pharmaceutical, the healthcare-focused subsidiary, posted sales of 170.1 billion won, a 7.3% increase. This was attributed to the growth of its over-the-counter (OTC) pharmaceuticals business. However, due to a one-time increase in costs and selling and administrative expenses related to the replacement of aging factory equipment, operating profit declined by 12.9% to 16.9 billion won.

Yongma Logis, a logistics specialist, recorded sales of 100.9 billion won, up 10.2%, driven by the acquisition of new clients and increased logistics volume in its core sectors of pharmaceuticals and cosmetics. Operating profit also surged by 108% to 4.3 billion won. The company explained that this was the result of improved cost ratios through operational efficiency.

ST Pharm Bio, a contract manufacturing organization (CMO) specializing in biopharmaceuticals, also saw improved results. The company reported sales and operating profit of 19.1 billion won and 1.9 billion won, respectively, representing increases of 63.8% and 556.1%.

Dong-A Socio Holdings analyzed, "Sales increased due to the commercialization of the 'Stelara' biosimilar (biopharmaceutical generic)," and added, "Operating profit also rose as a result of stabilized and more efficient production." Stelara is an autoimmune disease treatment originally developed by the global pharmaceutical company Janssen.