GC Green Cross reported a significant decline in its second-quarter performance, attributing the drop to the exclusion of its subsidiary and the deferral of revenue from seasonal high-margin products. The company anticipates a recovery in profitability as sales of high-revenue items are expected to be fully reflected in the second half of the year.
On July 31, GC Green Cross announced that its consolidated revenue for the second quarter reached 421.2 billion won, with an operating profit of 1.7 billion won and a net profit of 1.1 billion won. This represents a 15.8% decrease in revenue compared to the same period last year, while operating profit and net profit fell by 93.8% and 96.6%, respectively.
The results were impacted by the exclusion of GC Green Cross Wellbeing from the consolidated figures and the deferral of revenue recognition for seasonal high-margin products to the second half of the year.
In March, GC Green Cross sold its entire stake in GC Green Cross Wellbeing to GC (Green Cross Holdings) to improve its financial structure and secure investment resources for core business areas. The company plans to reorganize its business portfolio and strengthen the competitiveness of its core operations.
Another factor affecting the second-quarter results was the revenue from the raw material for the influenza vaccine. Typically recognized in the second quarter, this revenue was delayed due to a holdup in securing standard samples of the influenza strains designated by the World Health Organization (WHO). The affected quantities are expected to be shipped in July and reflected in the third-quarter results.
Sales of Hunterase, a treatment for Hunter syndrome and a key high-revenue product, are also expected to concentrate in the second half of the year, contributing to improved profitability.
The immunoglobulin product, Aliglo, recorded sales of 40.5 billion won, an increase of about 10% from the first quarter. The company anticipates achieving its sales target of $150 million this year.
Sales by business segment totaled 138.4 billion won for plasma-derived products, 55.2 billion won for vaccines, 86.5 billion won for prescription drugs, and 36.3 billion won for over-the-counter medicines and consumer healthcare.
GC Cell, a major consolidated subsidiary, reported second-quarter sales of 41.6 billion won. It reduced its operating loss by approximately 80% compared to the previous quarter and recorded a net profit of 2.2 billion won, marking its return to profitability for the first time in nearly two years since 2024. The company plans to improve annual performance through growth in its core businesses, including specimen testing services, and operational efficiency in the second half of the year.
A representative from GC Green Cross stated, "The second-quarter results fell short of market expectations due to temporary factors such as the delay in vaccine raw material production and the exclusion of the subsidiary. However, we expect the growth of Aliglo and the sales of high-revenue products like the influenza vaccine and Hunterase to be fully reflected starting in the third quarter, leading to a significant recovery in profitability in the second half of the year."
* This article has been translated by AI.
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