Dong-A group's Q1 sales rise as ST Pharm, Dong-A ST profits climb

Dong-A group companies reported higher first-quarter sales on Monday, led by prescription drugs, over-the-counter products and drug manufacturing services, though higher raw material, fuel and logistics costs cut into holding company profit.

Dong-A ST was among the Dong-A group companies that reported higher first-quarter sales. (Courtesy of Dong-A ST)

Dong-A Socio Holdings said consolidated revenue rose 6.9 percent from a year earlier to 351 billion won ($238 million) in the first three months this year. Operating profit fell 6 percent to 19.1 billion won as cost of sales rose 7.9 percent to 242.5 billion won.

Dong-A Pharmaceutical, the holding company’s main operating unit, posted a 10.5 percent rise in sales to 188 billion won and a 22.1 percent increase in operating profit to 20.6 billion won. Its over-the-counter drug sales rose 17.3 percent to 65.7 billion won.

STgen Bio, the group’s biologics contract manufacturing unit, posted 18 billion won in sales and signed three contracts worth a combined 21.1 billion won this year. The company plans to invest 109 billion won to raise drug substance bioreactor capacity to 14,000 liters from 9,000 liters and add an isolator filling line for drug product manufacturing.

Dong-A ST said standalone first-quarter revenue rose 10.7 percent to 187.1 billion won. Operating profit rose 53.7 percent to 10.8 billion won. Prescription drug sales rose 22.8 percent to 144 billion won, offsetting a 17.5 percent decline in overseas sales to 33.7 billion won.

ST Pharm posted the sharpest earnings gain among the group companies, citing high-margin product sales and foreign exchange effects. Revenue surged 27.7 percent to 67 billion won, while operating profit jumped to 11.5 billion won from about 1 billion won a year earlier. Revenue from ST Pharm’s subsidiaries, including contract research businesses, rose 41.8 percent to 10.9 billion won and turned profitable at the operating level.