[Click eStock] "CTK Expands North American OTC Business"

Yuanta Securities forecasted on the 7th that Citi K will see a sharp increase in profits in the second quarter of this year.

Researcher Lee Seung-eun of Yuanta Securities explained, "We estimate sales of 28.4 billion KRW and operating profit of 2.3 billion KRW in the second quarter," adding, "This represents an increase of 18.7% and 66.5%, respectively, compared to the same period last year."

He added, "It is understood that the order volume before the start of the second quarter this year has already exceeded the sales of the same period last year," and "Reorder sales from existing profitable clients are increasing." Furthermore, he noted, "The order of 11 new products for the private brand line of the major U.S. retailer Pure Beauty" and judged that "the launch of luxury brands by new clients will also have a positive impact on performance."

The researcher analyzed, "Expansion of the North American over-the-counter (OTC) business and new sales from Bio Canada will occur," and "As demand for OTC products increases, the OTC business will be actively pursued." He emphasized, "In 2 to 3 years, OTC sales will account for more than 30% of total sales," and "OTC products use proprietary formulas, resulting in a high profit margin of 40-50%." He continued, "Citi K Bio Canada is currently progressing supply contracts mainly with the Canadian and U.S. governments," and "Contracts with overseas airlines are also being pursued."

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