Daewoong Pharmaceutical announced first-quarter 2022 results

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May 05, 2022, 09:00 ET

- Marked sales of KRW 272.2 billion and operating profit of KRW 26.8 billion

- Reported record-high quarterly operating profit, thanks to highly profitable ETC drugs and export growth of Nabota

- Expected to see increasing profitability and robust growth due to export expansion of Nabota and the upcoming release of Fexuclue tablets

SEOUL, South Korea, May 5, 2022 /PRNewswire/ -- Daewoong Pharmaceutical (Daewoong) (CEO Sengho Jeon & Changjae Lee) announced its financial results for the first quarter of 2022 (separate basis). In the first quarter, the separate sales and operating profit marked KRW 272.2 billion and KRW 26.8 billion, up 12.6% and 32.6% year-over-year, respectively. In the same quarter, the consolidated sales and operating profit marked KRW 298.4 billion and KRW 23 billion, up 10.7% and 2.2% y-o-y, respectively.

Daewoong achieved record-high annual sales and operating profit in 2021 and again broke its record in the highest quarterly operating profit (separate basis) in the first quarter of this year. The sales growth of highly profitable ethical-the-counter (ETC) drugs and the increase in the export of Nabota were led by improvements in profitability, operating profit, and gross profit margin (GPM).

Sales of ETC drugs recorded KRW 197.6 billion, a 9% increase from KRW 181 billion y-o-y, leading to an increase in earnings. It is characterized by more than 20% growth compared to the same period of the previous year in highly profitable product lines such as an antiulcer drug Nexiad, a dyslipidemia drug Litorvazet, a gastric ulcer drug Axid, a hyperlipidemia drug Crezet, and an antithrombotic drug Cloart.

Sales of Nabota surged by 98% y-o-y, from KRW 15.4 billion to KRW 30.7 billion exports. In particular, its exports increased by 189% y-o-y, from KRW 7.9 billion to KRW 22.8 billion. For example, the exports to its U.S. sales partner Evolus amounted to KRW 18.3 billion, risen by three times y-o-y. Favorable exchange rates also supported the earnings. Nabota is expected to drive sales growth continuously, as Evolus is preparing to officially launch Nabota in Europe in the third quarter, and Nabota shows strong market presence in the countries where it has already been released.

Sales of over-the-counter (OTC) drugs recorded KRW 29.7 billion, a 12% increase from KRW 26.4 billion y-o-y. Due to the spread of COVID-19 and a surge in home treatment, the company's representative cold medicine EZN6 grew by 77.3% y-o-y, and the quasi-drugs related to physical fatigue Urshot and a wet patch Easyderm also contributed to the growth. Sales of supplements also surged by 169% y-o-y, owing to its strategic reinforcement of the supplement portfolio for the liver, centered on the liver-specialized brand Ener Thistle, blood circulation, intestine, and vitamins, and focus on online sales channels.

"With export expansion of Nabota based on superior product power and quality, the highly profitable ETC product lines continued to grow, leading to another record-breaking highest quarterly operating profit," said Sengho Jeon, Daewoong Pharmaceutical CEO. "For the second quarter and the second half of this year, we are expected to achieve solid growth and increasing profitability, thanks to the expansion of Nabota's overseas sales channels, the launch of highly profitable new products, such as Fexuclue tablets, a new drug for gastroesophageal reflux disease, and an increase in the gross profit margin."

SOURCE Daewoong Pharmaceutical Co., Ltd