Dong-A ST, 3Q Operating Profit 11.6 Billion KRW... 73% Increase YoY

Donga ST logo (Photo by Donga ST)

[Asia Economy Reporter Chunhee Lee] Dong-A ST announced on the 2nd that its preliminary operating results for the third quarter of this year (based on consolidated financial statements) showed sales of 151.875 billion KRW and operating profit of 11.636 billion KRW. These figures represent increases of 4.3% and 73.0%, respectively, compared to the same period last year.

By segment, the prescription drug (ETC) division achieved sales of 100.4 billion KRW, up 24.7% year-on-year, despite unfavorable market conditions such as the resurgence of COVID-19. This growth was driven by continuous sales of in-house developed drugs including Suganon, Motilitone, Grotropin, Gaster, as well as introduced products Jubilia, Idalbi, and generic drugs Flavitol and Lipinon.

The overseas export division recorded sales of 30.1 billion KRW, down 25.7% year-on-year, due to decreased sales of canned Bacchus (Cambodia) caused by COVID-19, reduced government-led bidding market resulting in lower sales of anti-tuberculosis drugs, and the deferral of export volume of Dabepeotin Alfa BS (Japan) to the fourth quarter.

The medical devices and diagnostics division showed continuous growth through expanded sales in the infection control sector; however, sales declined 17.5% year-on-year to 15.9 billion KRW due to contract termination of some medical device items in the fourth quarter of last year.

Operating profit increased despite research and development (R&D) expenses and selling and administrative expenses rising 15.2% and 8.6%, respectively, compared to the same period last year. This was attributed to improved cost ratios driven by growth centered on high-margin in-house drugs in the ETC division. Net profit for the period also rose 170.4% year-on-year to 11.334 billion KRW, reflecting the increase in operating profit.

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