Kyungdong Pharmaceutical Reports 1.8 Billion KRW Operating Profit in Q1, Achieves Turnaround

Kyungdong Pharmaceutical succeeded in turning an operating profit in the first quarter of this year compared to the same period last year, thanks to increased production volume and improved production management efficiency.

On May 15, Kyungdong Pharmaceutical announced that, on a standalone basis, it recorded sales of 45.5 billion KRW and operating profit of 1.8 billion KRW in the first quarter. Sales increased by 3.1% compared to the same period last year, and the company turned an operating profit. Since the second quarter of last year, it has continued to maintain stable operating profitability.

On a consolidated basis, the company reported sales of 45.8 billion KRW and operating profit of 1.5 billion KRW. Net profit for the period reached 1.6 billion KRW.

The improvement in first-quarter results was due to the stable growth of prescription drugs for chronic diseases such as diabetes and hypertension, as well as the company’s strategy to secure profitability through cost structure optimization. In particular, Kyungdong Pharmaceutical established a cost structure capable of generating stable profits by reducing production costs through improvements in the production structure and by efficiently executing selling and administrative expenses.

A company representative stated, "We achieved year-on-year growth in scale based on our lineup of prescription drugs focused on chronic diseases, which continue to show stable growth," and added, "Profitability has been continuously improving, especially through efficient production management and execution of selling and administrative expenses."

The representative further said, "We will continue to drive steady performance growth by strengthening our product portfolio for chronic diseases such as diabetes, hypertension, and hyperlipidemia, and by expanding marketing for premium health functional foods (HFFs)."

Meanwhile, Kyungdong Pharmaceutical’s premium HFF brand WIAVIM’s ‘Naksan Probiotics O’ began sequentially entering Olive Young’s offline stores nationwide at the end of last month. WIAVIM, launched by Kyungdong Pharmaceutical in May last year, is a premium healthcare brand that continues to strengthen its lineup through the ongoing release of new products.