‘Samdasoo’ Kwangdong Pharmaceutical’s 3rd quarter performance deteriorated… Operating profit plummeted by 87.6%

(Health Korea News / Changyong Lee) It was found that the profitability of Kwangdong Pharmaceutical, well known as ‘Samdasoo’, deteriorated significantly in the third quarter of this year. According to the company’s provisional operating results for the third quarter of this year (based on consolidated financial statements) announced on the 13th, operating profit during this period was only 1.4 billion won. This is an 87.6% decrease compared to the same quarter last year (KRW 11.1 billion).

During the same period, net profit also decreased by 3.9% from 9.3 billion won to 9 billion won.

However, sales during this period amounted to KRW 424.6 billion, an increase of 6.7% compared to the same period last year (KRW 397.8 billion).

Cumulative operating profit and net profit for the three quarters also recorded -39.6% and -12.8%, respectively. Cumulative sales alone increased by 10.6% to approximately KRW 1.2499 trillion, but it seems inevitable that the company will not avoid criticism that it is a fruitless growth.

Kwangdong Pharmaceutical’s worsening performance is interpreted as the result of excessively high sales of non-pharmaceutical products such as Samdasoo, an introduced product. Although the quarterly report has not yet been released, Kwangdong Pharmaceutical has been criticized as not being a pharmaceutical company in fact because the proportion of sales from the food and beverage sector is too high at around 60% of total sales.

(Kwangdong Pharmaceutical’s provisional operating performance for the third quarter of 2024 (consolidated basis)) (Unit: KRW million, %)

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