Dong-A Socio Holdings said profitability weakened in the first quarter as higher costs offset revenue growth.
The company said on the 27th that, on a consolidated basis, first-quarter revenue rose 6.9% from a year earlier to 351.0 billion won, while operating profit fell 6.0% to 19.1 billion won.
The company attributed the decline in operating profit to higher cost ratios at its operating subsidiaries, citing the impact of external conditions.
Healthcare unit Dong-A Pharmaceutical posted revenue of 188.0 billion won, up 10.5%, driven by growth in Bacchus and over-the-counter drug sales. Operating profit rose 22.1% to 20.6 billion won. Bacchus and OTC products grew 11.0% and 17.3%, respectively, while health functional foods slipped 2.1%.
STgen Bio, a contract manufacturer of biopharmaceuticals, reported revenue of 18.0 billion won, down 5.7%. Operating profit plunged 89.1% to 200 million won due to fixed-cost burdens. The company said results can vary by quarter depending on customer order schedules, adding that planned annual orders totaling 21.1 billion won are proceeding as scheduled.
Logistics unit Yongma Logistics recorded revenue of 110.6 billion won, up 9.6% from a year earlier, helped by new client wins. Operating profit, however, fell 10.4% to 3.8 billion won due to higher fuel costs and rising prices for logistics materials.
* This article has been translated by AI.
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