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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Bukwang Pharmaceutical reported that its operating profit for the first quarter of this year fell to less than half compared to the same period last year, primarily due to increased production costs stemming from outsourcing certain product lines. The company plans to improve both production capacity and profitability upon completing its ongoing acquisition of Korea Union Pharmaceutical.
On April 21, Bukwang Pharmaceutical announced during a corporate briefing that its preliminary first-quarter results recorded revenue of KRW 47.8 billion and operating profit of KRW 1.1 billion. While revenue remained largely unchanged from the same period last year (KRW 47.8 billion), operating profit declined by 62.6% (KRW 1.9 billion) from KRW 3.0 billion a year earlier.
The company explained that last year, amid disruptions in the healthcare system that led to shortages of prescription drugs, it increased production of ethical drugs while shifting over-the-counter (OTC) products to outsourced manufacturing. Although demand for prescription drugs normalized in the first quarter of this year, the higher cost burden from expanded outsourcing remained, weighing on profitability.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
