TONYMOLY Sells Stake in Subsidiary A2GEN... "Improvement in Consolidated Operating Profit"

[Asia Economy Reporter Moon Hyewon] Tony Moly has sold its shares in AtoGen, a bio-venture company researching and developing microbiome therapeutics.

On the 19th, Tony Moly disclosed that it disposed of approximately 330,800 shares of AtoGen to Yuhan Corporation for 7 billion KRW on the 15th.

AtoGen is a company specializing in the research and development of microbiome therapeutics. Tony Moly acquired AtoGen in January 2018 to expand its derma cosmetics business.

Through this share sale, Tony Moly improved its financial structure by realizing capital gains. Considering that the initial acquisition cost of AtoGen shares was about 3 billion KRW, Tony Moly effectively realized a capital gain of approximately 4 billion KRW.

Tony Moly stated, “Such capital gains will be recorded as non-operating income in the short term, contributing to the separate financial results for the third quarter,” and added, “In the mid to long term, consolidated operating profit and loss will improve, which is expected to help strengthen the company’s financial soundness.”

Meanwhile, Tony Moly announced that it has decided to invest part of the capital gains from this sale into new product development and domestic and overseas marketing activities. By eliminating inefficiencies in business sectors and reinvesting in specialized fields, the company aims to lay the foundation for long-term growth. Tony Moly plans to realize a recovery in performance in the second half of the year through rapid results led by online and overseas markets.

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