1. What Happened in Q2?

The Q2 2025 earnings will be announced at the Investor Relations (IR) meeting scheduled for July 28th. Q1 saw a mixed performance with strong growth in biosimilars and contract manufacturing, offset by sluggish sales of over-the-counter drugs and losses in the bottled water business. The Q2 results are expected to be a significant factor influencing future stock performance.

2. Why These Results?

  • Positive Factors: Continued growth in the biosimilar segment, strong performance in logistics.
  • Negative Factors: Declining profitability in over-the-counter drugs, continued losses in the bottled water segment, rising KRW/EUR exchange rate.
  • External Factors: Volatility in raw material prices and exchange rates, interest rate fluctuations.

These factors are expected to have a combined impact on Q2 earnings. The company’s risk management strategy regarding FX and raw material price fluctuations will be a particularly crucial factor.

3. What’s Next?

Investors should pay close attention to management’s future strategies outlined in the IR presentation. Specifically, they should look for concrete plans to improve profitability in the over-the-counter drug and bottled water segments, sustainable growth strategies for the biosimilar division, and risk management strategies for FX and raw material price fluctuations.

4. Investor Action Plan

Don’t just focus on the Q2 results. Evaluate the company’s medium to long-term growth strategy and risk management capabilities. Exercise caution if the plan to improve underperforming business segments is inadequate. Make informed investment decisions based on a thorough review of the information released after the IR.