Yuhan Yanghaeng 2Q Sales 468 Billion Won... Operating Profit Down 61.9%

[Asia Economy Reporter Lee Chun-hee] Yuhan Corporation announced its preliminary results for the second quarter of this year, reporting sales of 468 billion KRW and an operating profit of 10.8 billion KRW. With continuous sales growth, it is highly likely to join the 1 trillion KRW club again this year. However, operating profit decreased by 62% compared to the same period last year due to the base effect of license revenue and increases in cost of sales and research and development (R&D) expenses.

Yuhan Corporation disclosed these second-quarter preliminary operating results on the 28th. Sales for the second quarter were 468.031 billion KRW, up 10.4% from 423.823 billion KRW in the same period last year. On the other hand, operating profit was 10.795 billion KRW, down 61.9% from 28.371 billion KRW in the same period last year, and net profit was 19.181 billion KRW, a 25.2% decrease from 25.644 billion KRW in the same period last year.

A Yuhan Corporation official explained, "In terms of operating profit, the base effect was reflected as license revenue decreased by 69% compared to the same period last year due to the impact of license revenue being recognized in installments. In addition, factors such as increases in R&D expenses (15.8%) and cost of sales (17.0%) were present, but overall sales continued to show growth."

By business segment, the pharmaceutical division significantly drove sales growth. Yuhan Corporation's pharmaceutical sales in the second quarter were 332.751 billion KRW, an increase of 10.8% compared to the same period last year. Over-the-counter (OTC) drug sales grew by 23.9% year-on-year, and prescription drug (ETC) sales also showed a growth rate of 8.9%. The overseas business division achieved a 55.1% increase in sales, and the special purpose business also saw sales rise by 38.7%.

Yuhan Corporation's sales for the first half of this year totaled 865.724 billion KRW. It is expected to maintain its membership in the annual '1 trillion KRW club.' The cumulative operating profit for the first half was 15.824 billion KRW, and net profit was 107.942 billion KRW. Compared to the first half of last year, sales increased by 11.3%, but operating profit decreased by 61.2%. Meanwhile, net profit increased by 101.5%.

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