Yuhan Corp. and Green Cross, Korea’s two largest pharmaceutical firms by sales, are likely to see their annual revenue exceeding 1 trillion won ($894 million), respectively, this year.
According to preliminary earnings reports in regulatory filings on Oct. 31, Yuhan’s accumulated sales by the third quarter this year reached 1 trillion and 78.6 billion won, passing the 1 trillion won mark. Green Cross’ accrued revenue by the end of September stood at 961.6 billion won, making it most likely that its annual sales will also exceed 1 trillion won.
Yuhan’s third-quarter revenue amounted to 376.6 billion won, up 4.7 percent from a year earlier. Its operating profit in the July-September period surged 21.1 percent from a year ago to reach 19.3 billion won. Accumulated revenue and operating profit in the three quarters of this year went up 11.8 percent and 27.9 percent, respectively, from last year.
The company’s net profit rocketed to 19.4 billion won in the third quarter, up 228.9 percent from a year earlier. Accumulated net profits during the first three quarters also rose 12.2 percent year on year to 78.2 billion won.
Green Cross’ revenue amounted to 356.1 billion won with operating profit reaching 42 billion won in the third quarter. Concerning third-quarter operating profit, Green Cross performed better than Yuhan. Green Cross’ revenue in the third quarter rose 8.7 percent from a year earlier, and operating profit jumped 21.3 percent.
By quarterly results, the company’s revenue was a record high. Its accumulated sales and operating profit for the third quarter were up 9.7 percent and 29.8 percent, respectively, from the same period of last year.
Green Cross attributed the company’s robust earnings to its local and overseas business in good shape and the execution of sales management expenses, which drastically improved the company’s profitability.
The company’s forwarded shipments of chickenpox vaccines and albumins will be reflected on the balance sheet in the fourth quarter. Green Cross’ net profit grew 24 percent to 28.4 billion won in the third quarter from a year earlier. Its accumulated net profit rose to 62.3 billion won, an increase of 34.7 percent.
Hanmi Pharm posted 227.6 billion won in sales, and 27.8 billion won in operating profit in the third quarter. These figures are up 3.6 percent and 102.2 percent, respectively, from a year earlier. The company’s net profit jumped to 22.8 billion won, up 261.9 percent year to year. However, its accumulated net profit during the first nine months went down 13.3 percent year-on-year to 59.5 billion won.
Hanmi said its flagship drugs that the company developed itself, such as Amosartan and Amodipin, performed a balanced growth in sales. More than 71 percent of the revenue came from the products the company developed, while 17.8 percent was from those developed by other drugmakers.
Ildong Pharmaceutical has achieved a remarkable growth this year. Its third-quarter sales hit a record high of 127.9 billion won. The company’s operating profit also surged to 10.7 billion won in the third quarter, up 84 percent from the second quarter. Net profit increased 48 percent to 7.7 billion over the cited period.
The company’s revenue in the third quarter climbed up 61.6 percent year-on-year, with operating profit rising 146.2 percent. Its net profit grew 100.5 percent during the same period. As the drugmaker had a split-off of its investment business in August, the year-to-year comparison of two-month earnings makes its performance seemingly better, analysts said.
However, Ildong’s performance seems to be not bad, considering the record high third-quarter sales and quarterly earnings growth, they said.
Ildong said its sales of prescription drugs such as Curan, Rabiet, Flumarin, and Onglyza, besides its flagship vitamin combo Aronamin Gold, helped improve profitability. The company’s online shopping mall, Ildong Shop, has also taken root to contribute to profitability. Ildong plans to boost the sales of new chronic hepatitis B therapy Besivo and three-combo hypertension drug Twotops Plus in the fourth quarter, as it launches the two products in November.
Boryung Pharm recorded 120.1 billion in sales, 1.5 billion won in operating profit, and 2 billion won in net profit, in the third quarter. The year-on-year revenue inched up 2.4 percent, but operating profit and net profit plunged by 77.7 percent and 37.7 percent, respectively.
Its accumulated earnings until the third quarter were on a similar track. Accrued revenue during the three quarters went up 5.6 percent to 328.9 billion won but accumulated operating profit, and net profit went down 66 percent and 63.9 percent, respectively, over the cited period.
Handok posted 112.3 billion won in sales, 2.5 billion won in operating profit and 600 million won in net profit in the third quarter. Its sales were up 11.8 percent in the July-September quarter from a year earlier, and operating profit, up 31.3 percent.
However, the company turned to a net loss in the third quarter. Regarding accumulated earnings during the three quarters this year, sales, operating profit, and net profit all rose by 9.6 percent, 40.5 percent and 48.3 percent, respectively, from a year earlier.
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