Daewon Pharmaceutical Posts Q1 Sales of 158.1 Billion Won, Operating Profit Down 53%

Sales Remain Steady Despite Fewer Respiratory Patients... Impact from Expansion of Health Functional Foods Business

Profitability Declines Due to Increased Marketing Expenses and Greater Proportion of Goods Sales... R&D Investment Up 31.7%

Daewon Pharmaceutical reported consolidated sales of 158.1 billion won and an operating profit of 4.4 billion won for the first quarter of this year. Although the pharmaceutical industry’s operating environment changed due to a decrease in patients with respiratory illnesses such as influenza compared to the previous year, sales remained solid. However, profitability declined as a result of increased expenses driven by the expansion of the health functional foods business.

Daewon Pharmaceutical corporate logo image. Daewon Pharmaceutical

On May 15, Daewon Pharmaceutical announced its first quarter results. Operating profit decreased by 53.4% compared to the same period last year, which the company attributed to a rise in strategic marketing expenses aimed at expanding its market share in the health functional foods sector, as well as an increased proportion of goods sales.

The company also expanded its investment in research and development. In the first quarter, recurring development expenses amounted to 6.78 billion won, up 31.7% from 5.15 billion won in the same period last year. The company explained that it increased investments in new pipeline research and clinical trials.

A Daewon Pharmaceutical representative stated, "Despite a challenging environment caused by seasonal factors affecting respiratory products, our efforts to diversify into new businesses have yielded tangible results. We will continue to focus on research and development and the cultivation of new markets to drive mid- to long-term growth."

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