Dong-A Socio Holdings posted its largest-ever quarterly earnings, driven by the growth of its key subsidiaries.
Dong-A Socio Holdings said on the 27th that it recorded consolidated revenue of 412.4 billion won and operating profit of 39 billion won in the second quarter of this year. This represents increases of 18.9% and 38.4% in revenue and operating profit, respectively, from a year earlier. The operating profit margin improved to 9.4% this year from 8.1% in the same period last year.
The earnings improvement resulted from growth by major consolidated subsidiaries, including Dong-A Pharmaceutical and Yongma Logis, across their respective business areas. Dong-A Pharmaceutical's second-quarter revenue rose 25.7% year-on-year to 228.2 billion won. Stable performances by products including the energy drink "Bacchus," the cold medicine "Panpyrin" and the mouthwash "Garglin" supported the results. In particular, revenue from the Bacchus business division surged 26.6% year-on-year to 87.8 billion won. "Revenue grew significantly thanks to seasonal demand during the election period and strong sales of the new product 'Eolbaksa,'" a company official said. Dong-A Socio Holdings is also proceeding with a merger to absorb Dong-A Pharmaceutical, in which it holds a 100% stake. The merger date is October 1. The company plans to internalize the cash generated by Dong-A Pharmaceutical within the holding company to expand direct investment in new businesses.
The earnings of logistics specialist Yongma Logis also grew on increased logistics volumes from existing clients and the acquisition of new clients. Second-quarter revenue rose 19.7% year-on-year to 120.5 billion won, and operating profit increased 41.6% to 6.9 billion won. "Despite rising fuel costs and logistics material costs, selling and administrative expenses declined, improving profitability," a company official explained.
However, biopharmaceutical contract manufacturing (CMO) subsidiary BTgen (formerly ST Gen Bio) posted weak results as major clients' order schedules were concentrated in the second half of the year. BTgen's second-quarter revenue fell 45.2% year-on-year to 13.7 billion won, and operating profit dropped 90% to 400 million won.
