Daewon Pharmaceutical (CEO:Baek In-hwan ) recorded a cumulative working deficit for the third quarter as a result of aftermath of poor efficiency by its subsidiary. Market consideration is targeted on whether or not the corporate can achieve turning to annual profitability by means of a fourth-quarter efficiency rebound.
In response to the digital disclosure system on the twelfth, Daewon Pharmaceutical’s cumulative third-quarter gross sales final yr had been 445.6 billion received, with an working lack of 2.4 billion received. In comparison with gross sales of 453.1 billion received and working revenue of 25 billion received for a similar interval of the earlier yr, gross sales decreased barely whereas working revenue and loss turned to deficit.
Kodaewon, Daewon Pharmaceutical’s flagship product, is an antitussive expectorant that helps suppress coughs or aids in phlegm discharge. Kodaewon gross sales confirmed an upward development of 56.6 billion received in 2022, 80.4 billion received in 2023, and 93.2 billion received in 2024, accounting for about 15.6% of complete gross sales.
Nevertheless, latest quarterly developments have been sluggish. Kodaewon’s third-quarter gross sales final yr had been 16.2 billion received, a lower of 5.4 billion received (roughly 25%) in comparison with the identical interval of the earlier yr (21.6 billion received). Even in comparison with the instantly previous quarter (19.8 billion received), gross sales dropped by 3.6 billion received (roughly 18%). Because of the traits of merchandise which might be affected by seasonal demand, quarterly fluctuations happen, however the gross sales proportion stays excessive.
Daewon Pharmaceutical is increasing product traces together with metabolic ailments to cut back seasonal results. The osteoarthritis remedy ‘Sinbaro’ recorded third-quarter gross sales of 5.6 billion received final yr, a rise of 32.3% in comparison with the identical interval of the earlier yr (4.3 billion received), and the dyslipidemia remedy ‘Tabarojet’ additionally elevated by 30.9% to 4.9 billion received in comparison with the identical interval of the earlier yr (3.7 billion received).
However, the poor efficiency of subsidiary SD Biotechnology is recognized because the background for the consolidated working revenue and loss turning to deficit. SD Biotechnology engages in well being purposeful meals and cosmetics enterprise, recording cumulative third-quarter gross sales of 23.7 billion received and working lack of 4.8 billion received final yr. In distinction, Daewon Pharmaceutical’s standalone efficiency excluding subsidiaries maintained profitability with gross sales of 397.9 billion received and working revenue of 4.5 billion received throughout the identical interval.
Daewon Pharmaceutical has appointed Baek In-young, former head of the Healthcare Enterprise Division and third-generation proprietor, because the consultant of SD Biotechnology to strengthen accountable administration. Whether or not SD Biotechnology’s efficiency improves has emerged as a key variable that may decide the route of Daewon Pharmaceutical’s annual efficiency.
Nevertheless, market forecasts are blended. The securities business views that Daewon Pharmaceutical’s annual working revenue might considerably gradual in comparison with the earlier yr (28.2 billion received). SK Securities estimated Daewon Pharmaceutical’s gross sales at 598.6 billion received and working revenue at 600 million received final yr. On this case, the working revenue margin can be on the 0.1% stage. Daol Funding & Securities estimated gross sales at 614.8 billion received and working revenue at 5.1 billion received
