Boryung Pharma posts upbeat Q1 earnings, but outlook cloudy

Boryung Pharmaceutical on Friday announced over 40 percent on-year increase in its operating profit in the first quarter, but also expressed concerns for the next quarter.

The company’s consolidated revenue for the first quarter rose 13 percent to 134.2 billion won ($109 million), while operating profit rose 42 percent to 13.3 billion won and net profit slid 6 percent to 8.3 billion won.

It said its anti-hypertension drug Kanarb’s domestic performance led to good business last year, and the effects of it were reflected in the first quarter. Boryung surpassed the 500 billion won revenue threshold for the first time last year.

“We are concerned about the second quarter, when the COVID-19 effects will begin to appear in our financial papers,” said a Boryung official.

In comparison to the rosy first-quarter results, the drop in figures would appear worse than it looks.

The coronavirus pandemic hit South Korea in February, and Boryung’s sales began to decrease from March.

“Our drugs are for chronic illnesses -- meaning our overall performance will not totter easily. But if the economic uncertainty drags on, it will affect our business,” the official said.

The company is prepared for the worst, however, preemptively securing raw material for medicine sourced from varying overseas destinations including China, India, Japan and Europe.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)