Dongwha makes record sales record for 4 consecutive years

The power of overseas investment

Dongwha Pharmaceutical's sales last year reached KRW 464.9 billion... 29% increase compared to 2023

Vietnam's pharmacy chain adds annual sales of KRW 100 billion... “Business to be fully launched this year”

Dongwha Pharmaceutical has broken its sales record for 4 consecutive years.

 

The company's active overseas investment and entry into new businesses are cited as the driving forces behind the record sales streak.

 

In particular, the Vietnamese pharmacy chain it acquired in 2023 has contributed greatly to the expansion of the company's business.

 

Vietnam's Trung Son Pharma recorded sales of more than KRW 100 billion last year.

 

The company plans to fully promote its business in Vietnam this year and expects its performance to improve further in the process.

 

According to the Financial Supervisory Service on the 26th, Dongwha Pharmaceutical recorded sales of KRW 464.9 billion last year, up 28.7% from the previous year.

 

Sales have increased for 4 consecutive years.

 

Dongwha Pharmaceutical's sales have steadily increased from KRW 272.1 billion in 2020 to KRW 293 billion in 2021, KRW 340.4 billion in 2022, and KRW 361.1 billion in 2023.

 

Compared to 2020, the sales volume has increased by more than 70% in four years.

 

In particular, sales growth was remarkable last year.

 

This is in contrast to the 10% annual average increase it had made from 2020 to 2023.

 

By growth rate alone, it is three times than that of previous years.

 

Dongwha Pharmaceutical

The analysis is that the Vietnamese pharmacy chain that the company acquired led to the expansion of its external appearance.

 

Dongwha Pharmaceutical acquired Trung Son Pharma in Vietnam in August 2023.

 

It purchased a 51% stake in Trung Son Pharma for a total of KRW 39.1 billion.

 

Trung Son Pharma generated KRW 101.1 billion in sales last year alone.

 

With the addition of sales of KRW 100 billion, Dongwha Pharmaceutical's consolidated sales exceeded KRW 400 billion for the first time.

 

Other sales, excluding Trung Son Pharma’s sales, have also increased year-on-year.

 

Dongwha Pharmaceutical's separate sales last year were KRW 363.8 billion, an 8.6% increase from KRW 335.1 billion in 2023.

 

However, Trung Son Pharma had a negative impact on Dongwha Pharmaceutical's operating profit.

 

Dongwha Pharmaceutical's consolidated operating profit fell 28.7% from KRW 18.8 billion in 2023 to KRW 13.4 billion last year.

 

Dongwha Pharmaceutical explained that the “operating profit decreased due to the recording of consolidated income and expenses in the Vietnamese pharmaceutical distribution chain.” Dongwha Pharmaceutical expects its Vietnam business to be in full swing this year, with Trung Son Pharma at the center and said that sales and operating profit are expected to improve further once the related businesses go on track.

 

“After the acquisition of Trung Son Pharma, the company has been focusing on post-merger integration (PMI) and is now in the stage of full-scale business promotion,” said a Dongwha Pharmaceutical official.

 

”Once the time-consuming drug approval issues are resolved, we expect Trung Son Pharma’s sales and operating profit to improve further.”