Daewon Pharmaceutical Narrows Q3 Loss... Cumulative Operating Profit Turns Positive
Third-quarter revenue fell to KRW 139.3 billion
Declined amid drug price cuts and weaker respiratory demand
Daewon Pharmaceutical reduced its third-quarter loss to less than half of last year’s level. As prescriptions for chronic disease treatments increased and new consumer healthcare products continued to launch, the company’s cumulative operating profit for the year returned to positive territory.
On November 13, Daewon Pharmaceutical said consolidated third-quarter revenue fell 3.2% year over year to KRW 139.3 billion from KRW 143.9 billion. Its operating loss narrowed significantly to KRW 4.1 billion from KRW 10.4 billion in the same period last year, while its net loss decreased to KRW 7.3 billion from KRW 18 billion. The operating margin improved by 4.3 percentage points, from -7.2% to -2.9%. Revenue declined due to drug price cuts and weaker demand related to respiratory diseases, but profitability improved.
For the first nine months of the year, revenue rose 1.0% year over year to KRW 450.2 billion from KRW 445.6 billion. Cumulative operating profit was KRW 300 million, marking a return to profit from an operating loss of KRW 2.4 billion in the same period last year. The cumulative net loss narrowed substantially to KRW 1.6 billion from KRW 16.6 billion last year.
Daewon Pharmaceutical said the results reflected a stronger growth foundation, supported by increased prescriptions for chronic disease treatments and continued new product launches in its consumer healthcare (CHC) division.
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A Daewon Pharmaceutical representative said, "Third-quarter revenue declined due to drug price cuts and weaker demand for respiratory disease treatments. However, increased prescriptions for chronic disease treatments and new product launches in the CHC division helped us return to cumulative operating profit. In the fourth quarter, we will actively respond to increased winter demand for respiratory disease treatments and sustain growth in our chronic disease and CHC businesses to expand revenue and improve profitability."
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