Daewoong Pharmaceutical Q1 Earnings Announcement... Sales 272.2 Billion KRW, Operating Profit 26.8 Billion KRW

Prescription Drug Nabota Export Growth Sets Quarterly Record for Operating Profit

Daewoong Pharmaceutical exterior.

[Asia Economy Reporter Lee Gwan-joo] Daewoong Pharmaceutical announced on the 28th that its separate basis sales in the first quarter of this year reached 272.2 billion KRW, and operating profit was 26.8 billion KRW, marking increases of 12.6% and 32.6% respectively compared to the same period last year. On a consolidated basis for the same quarter, sales recorded 298.4 billion KRW and operating profit was 23.0 billion KRW, up 10.7% and 2.2% respectively from the previous year.

Following record-high annual sales and operating profit last year, Daewoong Pharmaceutical once again set a quarterly record for highest operating profit (on a separate basis) in the first quarter of this year. Growth in prescription drug (ETC) sales focused on high-profit products and increased exports of Nabota led improvements in profitability, operating profit, and gross profit margin (GPM).

The ETC division recorded sales of 197.6 billion KRW, a 9% increase from 181.0 billion KRW in the same period last year. Highly profitable product groups such as the anti-ulcer Nexiad, dyslipidemia treatment Ritovazet, gastric ulcer drug Axid, hyperlipidemia treatment Crezet, and antithrombotic Cloart grew by more than 20% compared to the previous year.

Nabota sales surged 98% to 30.7 billion KRW from 15.4 billion KRW in the same period last year. In particular, exports increased 189% from 7.9 billion KRW to 22.8 billion KRW. Exports to Evolus, the U.S. sales partner, were recorded at 18.3 billion KRW, about three times the amount from the previous year. Evolus is preparing to launch Nabota in Europe in the third quarter.

The OTC division posted sales of 29.7 billion KRW, a 12% increase from 26.4 billion KRW in the same period last year. The representative cold medicine EasyN6 grew 77.3% year-on-year due to the spread of COVID-19 and a surge in demand for home remedies. The strong performance of quasi-drugs related to physical fatigue, such as Urushot and moist patch Easyderm, also contributed. Health functional foods grew 169% year-on-year, centered on the liver health specialist brand Enercithl, strengthening portfolios for liver health, blood circulation health, gut health, and vitamins, and focusing on online sales channels.

Seung-ho Jeon, CEO of Daewoong Pharmaceutical, said, “Nabota’s exports have expanded based on excellent product capability and quality, and the high-profit ETC product group continued to grow, leading to another record high quarterly operating profit.” He added, “In the second quarter and the second half of this year, we expect profitability to continue improving and growth to remain steady, supported by the expansion of Nabota’s overseas sales channels, the launch of high-profit new products such as the new drug Pexuclu tablets for gastroesophageal reflux disease, and an increase in gross profit margin.”

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