Dong-A Pharmaceutical (000640) posted its highest-ever quarterly revenue, driven by growth in its over-the-counter (OTC) drug business.
The company said on the 27th that third-quarter revenue on a consolidated basis reached 431 billion won ($301 million), with operating profit of 35.1 billion won. Revenue and operating profit rose 12.7% and 5.4%, respectively, from a year earlier. Operating margin, however, narrowed to 8.1% from 8.7% a year earlier.
The revenue growth reflected gains at Dong-A Pharmaceutical itself as well as consolidated subsidiaries including Yongma Logis. Dong-A Pharmaceutical's third-quarter revenue rose 13.4% from a year earlier to 227 billion won, while operating profit increased 1.4% to 28.9 billion won. Revenue from the OTC division jumped 27.2% from a year earlier to 72.6 billion won. A company official said over-the-counter drug sales increased on growth in topical skin treatments and new distribution of Opella brands. In the first half of this year, Dong-A Pharmaceutical signed exclusive domestic distribution agreements for four over-the-counter drugs from Opella, including treatments for constipation and allergic rhinitis.
Revenue at Yongma Logis, a logistics company, also grew as existing clients increased shipment volumes and the company won new customers. Third-quarter revenue rose 10.8% from a year earlier to 121.5 billion won. Operating profit, however, fell 57.9% to 2.7 billion won. A company official said operating profit declined because of higher fuel costs and prices for logistics materials.
At Bitigen, a subsidiary that provides contract manufacturing of biopharmaceuticals, revenue fell as shipments of commercialized products were pushed back. Bitigen's third-quarter revenue dropped 20.9% from a year earlier to 24.9 billion won. Operating profit, however, surged 168.3% to 4.9 billion won, helped by improved cost ratios as unit prices rose for the products shipped.
The results are the first since Dong-A Pharmaceutical, formerly Dong-A Socio Holdings, absorbed its wholly owned subsidiary, the former Dong-A Pharmaceutical, on Oct. 1.