JVM Reports Record Q4 Sales of 34.3 Billion KRW Last Year... Strong Overseas Sales Performance

Operating Profit Up 14.2% with Continued R&D Investment
New Clients in North America, Europe, and Australia Keep Increasing

[Asia Economy Reporter Lee Gwan-joo] JV M, a subsidiary of Hanmi Science, announced on the 27th that it achieved consolidated sales of 34.3 billion KRW in the fourth quarter of last year, marking the highest quarterly sales ever. The previous record for quarterly sales was 31.3 billion KRW in the fourth quarter of 2019.

Compared to the previous quarter, sales in the fourth quarter of last year increased by 12.3%, and operating profit rose by 14.2% to 4 billion KRW. JV M invested 2.2 billion KRW, equivalent to 6.6% of sales, in research and development (R&D). Total sales for the year amounted to 115.8 billion KRW, operating profit was 12.4 billion KRW, and net profit was 8.9 billion KRW.

JV M explained that in the fourth quarter of last year, order volumes increased due to the replacement of aging equipment by existing clients, additional purchases of new products, and an increase in the number of newly opened pharmacies. Additionally, pre-orders from customers who decided to purchase products ahead of the new year also increased. Sales of consumables such as cartridges used in automation devices also grew alongside.

In overseas markets, amid the global COVID-19 pandemic, demand for non-face-to-face pharmaceutical prescription and dispensing has exploded, leading to an increase in new customers. In North America, due to labor shortages caused by COVID-19, the introduction of automated pharmaceutical dispensing equipment is accelerating in retail pharmacies and the LTC (Long Term Care) market. Furthermore, as the pharmaceutical packaging method shifts from bottles (vials) to pouches, new demand is growing, such as the expansion of JV M’s flagship product ATDPS adoption in pharmacy factory-type dispensing centers.

In Australia, government support for pharmacies providing pouch and blister card packaging services has led to increased inquiries about JV M’s automated pharmaceutical dispensing equipment. Particularly, numerous new contracts were signed in Europe last year, resulting in double-digit sales growth compared to the previous year; however, the company explained that a significant amount of deferred revenue occurred as product installation dates shifted into this year. This year, the deferred revenue is expected to be recognized gradually, and with anticipated new hospital demand and new contracts for pharmacy factory-type dispensing centers in Europe, rapid growth is expected to continue.

As synergy effects between JV M and Hanmi Pharm Group grow, gradual performance growth is also accelerating. Since being incorporated into Hanmi Science in 2016, JV M has focused on sustainable management without wavering by pursuing strong internal management, pioneering the single-pharmacy market, and targeting new overseas markets.

With the expected rapid change in health functional food consumption trends due to the proposed legislation on small-quantity sales of health functional foods this year, JV M is conducting discussions with various companies to supply automated dispensing machines for health functional foods. The company aims to achieve an overwhelming market share not only in the pharmacy pharmaceutical automated dispensing market, where it has held a dominant number one position, but also in the automated dispensing market for health functional foods.

A JV M official said, "In the global COVID-19 pandemic situation, JV M is recognized as a company that will lead the post-COVID era, brightening the company’s future value even more," adding, "We will make this year the first year of a new leap forward."

This content was produced with the assistance of AI translation services.