(Health Korea News / Lee Chang-yong and Yoo Ji-in) Yuhan Corporation consistently ranked first in the domestic pharmaceutical industry’s sales rankings based on cumulative cumulative results in the third quarter of this year. Yuhan Corporation also ranked first in sales for the third quarter.
This is the result of the medical journal Health Korea News analyzing the operating performance of the third quarter of 2024 based on the quarterly reports of 76 major listed pharmaceutical companies. (Refer to the attached file for the current period and cumulative operating performance below)
As a result of the analysis, the total cumulative sales of these 76 companies in the third quarter were KRW 19.1285 trillion, an increase of only 1.44% compared to the same period last year (KRW 18.8577 trillion). This appears to be an effect of the medical crisis, including the departure of residents due to the increase in medical school quotas enforced by the Yoon Seok-yeol government.
During the same period, cumulative operating profit increased by 5.62% from KRW 1.0603 trillion to KRW 1.1199 trillion, and cumulative net profit increased by 11.02% from KRW 687.1 billion to KRW 762.8 billion. The increase in operating profit and net profit despite stagnant sales can be interpreted as the fact that pharmaceutical companies, concerned about the impact of the medical crisis, pursued high-intensity austerity policies such as reducing cost of sales and reducing manpower.
Yuhan Corporation ranked first in sales by company on a cumulative basis in the third quarter. Yuhan Corporation posted sales of KRW 1.5717 trillion during this period, an increase of 10.54% compared to the same period last year (KRW 1.4218 trillion). Yuhan Corporation maintained its first place (KRW 598.8 billion) in sales for the third quarter.
GC Green Cross ranked 2nd in cumulative sales for the third quarter (KRW 1.239 trillion – KRW 464.9 billion for the current period), 3rd place Chong Kun Dang (KRW 1.1711 trillion – KRW 412.8 billion for the current period), and 4th place Hanmi Pharmaceutical (KRW 1.1439 trillion) – KRW 362.1 billion for the current period), 5th Daewoong Pharmaceutical (KRW 1.0548 trillion – KRW 358.5 billion for the current period) Won) was in that order.
In this way, a total of 5 companies achieved KRW 1 trillion in sales in 3 quarters.
Next, Boryung (6th), HK Innoen (7th), Dongkuk Pharmaceutical (8th), JW Pharmaceutical (9th), and Dong-A ST (10th) ranked in the top 10 in sales.
Changes in the ranking of 4 companies in the top 10 in sales… Interested in 4th quarter performance
This year in particular, the change in rankings is noticeable. As of the third quarter of last year, JW Pharmaceutical ranked 8th in cumulative sales. However, in the third quarter of this year, Dongkook Pharmaceutical, which was in 9th place last year, took over that position and rose to 8th place.
The gap in cumulative sales between the two companies in the third quarter also widened considerably. Dongkook Pharmaceutical’s cumulative sales in the third quarter of this year recorded KRW 601.2 billion, a 10.70% increase compared to the same period last year (KRW 543.1 billion), but during the same period, JW Pharmaceutical’s sales decreased by 2.20% from KRW 543.5 billion to only KRW 531.5 billion. This is the first time that Dongkook Pharmaceutical has surpassed Joongwae Pharmaceutical, which was a powerhouse in the pharmaceutical industry in the past.
Jeil Pharmaceutical and Donga ST also changed their rankings. Until the third quarter of last year, Jeil Pharmaceutical was in 10th place, but this year, Dong-A ST, which was in 11th place, took over that position, drawing attention to the final sales ranking at the end of the year. The two companies are showing a slight sales gap as of the third quarter. Dong-A ST ranked 10th with KRW 519.2 billion, and Jeil Pharmaceutical ranked 11th with KRW 518 billion, splitting the rankings by about KRW 1 billion.
Therefore, this year’s final sales ranking between the two companies is expected to differ based on their performance in the fourth quarter.
Hanmi Pharmaceutical ranks first in operating profit… Recording 3 times higher performance than Yuhan Corporation
The company with the highest cumulative operating profit in the third quarter was Hanmi Pharmaceutical. Hanmi Pharmaceutical achieved an operating profit of 185.7 billion won during this period, nearly three times more than Yuhan Corporation (66.7 billion won), the top company in sales. When comparing the operating profit margins of the two companies, Hanmi Pharmaceutical’s was 16.24% and Yuhan Corporation’s was 4.24%.
Operating profit is the most important profitability indicator that determines a company’s management performance and is a sign of a healthy company. The reason Hanmi Pharmaceutical’s operating profit is so high is because almost 100% of its products are not introduced products, but are made up of self-developed products such as new drugs. Unlike other companies, the fruits of generous investment in research and development (R&D) have emerged.
Therefore, Hanmi Pharmaceutical recorded the highest performance in net profit. The company’s cumulative net profit in the third quarter was KRW 145.2 billion, a 12.60% increase compared to the same period last year. This means that even after excluding all costs incurred during corporate management, such as R&D costs, labor costs, and facility investment costs, the company made this much pure profit.
In this analysis, companies such as Hyundai Pharmaceuticals, which closed its accounts in November, Kwangdong Pharmaceuticals, which has virtually transformed into a food and beverage company, and Samsung BioLogics, a biopharmaceutical CDMO (consignment development and manufacturing) company, were excluded.
Copyright © Health Korea News Unauthorized reproduction and redistribution prohibited
Source: www.hkn24.com
