1. Kwangdong Pharmaceutical H1 2025 Earnings: What Happened?

Kwangdong Pharmaceutical achieved revenue of KRW 425.2 billion in H1 2025, continuing its growth trend. However, operating profit and net profit declined to KRW 4.5 billion and KRW 2.3 billion, respectively, indicating a decline in profitability.

2. Why These Results?: Key Factor Analysis

Revenue growth was driven by strong performance in the F&B sector (Samdasoo, Vita500) and ethical pharmaceuticals. However, increased selling, general and administrative expenses, and R&D expenses negatively impacted profitability. New business ventures (solar power generation) and investments in new drug development are positive in the long term.

3. What’s Next?: Future Outlook and Investment Strategies

In the short term, concerns about declining profitability could negatively impact the stock price. However, considering brand power, business diversification, and new business investments, the long-term outlook is positive. The key is cost management and the realization of new business results.

4. Investor Action Plan: What Should You Do?

  • Short-term investors: Be cautious of stock price volatility following the earnings announcement.
  • Mid- to long-term investors: Monitor cost management capabilities and new business performance while exploring investment opportunities.
  • All investors: Continuously monitor exchange rate and interest rate fluctuations, as well as changes in the competitive landscape.