Dong-A Socio, 2Q Sales 284.9 Billion KRW... Operating Profit Up 38%

Dong-A Socio Holdings recorded sales of 284.9 billion KRW in the second quarter of this year, with operating profit increasing by 38%.

Dong-A Socio Holdings Exterior [Photo by Dong-A Socio Holdings]

Dong-A Socio Holdings announced on the 27th that its consolidated operating (preliminary) results for the second quarter showed sales of 284.888 billion KRW and operating profit of 19.617 billion KRW. Compared to the same period last year, sales increased by 9.1%, and operating profit rose by 37.9%. Net income and non-operating gains and losses are still undecided and will be disclosed in the semi-annual report.

Looking at subsidiaries, Dong-A Pharmaceutical, a healthcare specialist company, recorded sales of 163.2 billion KRW, up 12.5% year-on-year, and operating profit of 22 billion KRW, up 9.6%, driven by growth in over-the-counter (OTC) and daily health business sectors.

STGen Bio, a biopharmaceutical specialist company, posted sales of 7.8 billion KRW, a 43.5% increase compared to the same period last year. Operating loss widened to 6.2 billion KRW from a loss of 1.3 billion KRW in the previous year. Dong-A Socio Holdings explained, "Sales increased due to higher order volumes requested by consignees," and "Operating loss was due to one-time costs incurred from expansion construction of production capacity."

Logistics specialist Yongma Logistics recorded sales of 88.6 billion KRW and operating profit of 3.9 billion KRW, while bottled water specialist Dongchunsu posted sales of 8.7 billion KRW and operating profit of 0.5 billion KRW. Dong-A Socio Holdings analyzed that "Yongma Logistics saw increases in both sales and operating profit due to new client acquisition, operational stabilization, and cost ratio improvement," and regarding Dongchunsu, "Sales and operating profit declined due to sluggish consumption caused by a downturn in the bottled water market."

Meanwhile, Dong-A Socio Holdings decided on a quarterly dividend of 1,000 KRW per common share on the same day. This dividend amount is double last year's 500 KRW per share, with a total dividend payout of 6.3 billion KRW. The dividend record date was the 30th of last month, and the dividend payment date is scheduled for the 10th of next month.

In 2021, Dong-A Socio Holdings announced a shareholder return policy for the three years from 2021 to 2023. The plan is to return more than 30% of consolidated net income excluding non-recurring gains and losses to shareholders through cash dividends and share buybacks and cancellations.

The company stated, "We will actively conduct not only year-end dividends but also quarterly dividends," adding, "We will provide shareholders with stable cash flow."

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