GC Green Cross Posts KRW 13.1 Billion Operating Profit, Up 18% Year-on-Year

All Major Business Segments Grow,
Including Blood Products, Prescription Drugs, and Vaccines

[Asia Economy, reporter Lee Gwanju] On August 1, GC Green Cross announced that its consolidated operating profit for the second quarter of this year reached KRW 13.1 billion, an 18.0% increase compared to the same period last year. During the same period, sales rose by 9.2% to KRW 423.2 billion, while net profit for the period was KRW 10.9 billion.

On a separate basis, sales also grew by 9.7% year-on-year, driven by strong overseas business performance. The company achieved record-high sales of KRW 66.4 billion from flu vaccines supplied to the Southern Hemisphere, and overseas sales of blood products also posted double-digit growth due to increased sales volume and higher unit prices.

By business segment, sales of blood products reached KRW 106 billion, prescription drugs KRW 81.1 billion, vaccines KRW 84.4 billion, and other segments including consumer healthcare KRW 50.9 billion, with all segments showing growth.

In terms of R&D, research and development expenses increased significantly year-on-year due to the Phase 2 clinical trial of the next-generation shingles vaccine being developed in the United States. However, strong performance of core products led to improved profitability. The consolidated gross margin improved by 3.4 percentage points year-on-year to 33.5%.

The company expects robust sales growth in the vaccine segment to continue in the second half of the year, as revenue from Northern Hemisphere flu vaccines will be recognized starting in the third quarter.

In addition, major affiliates also showed solid growth. GC Cell reported strong results in the second quarter, with sales of KRW 55.7 billion and operating profit of KRW 5 billion, as its main cash cows-specimen testing and biopharmaceutical logistics-continued to grow. GC Green Cross Wellbeing also achieved double-digit sales growth thanks to strong performance in injectable drugs and health functional foods businesses.

A GC Green Cross official stated, "Despite the economic uncertainties expected in the second half of the year, the strong performance of our core business segments is expected to continue."

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