Caregen Reports Third Quarter 2021 Financial
Results
Caregen (CEO YJ Chung) reported financial
results for the third quarter ended September 30, 2021. Total consolidated revenue
for the second quarter were 13.6 billion won, operating profit 6.0 billion won,
and net income 6.5 billion won. The operating profit margin
decreased due to an increase in SG&A expenses related to the ongoing health
functional food and pharmaceutical business. Revenue in the third
quarter were KRW 13.6 billion, a decrease of 7.3% compared to the same period
of the previous year, as some sales were carried over to the fourth quarter due
to the deepening import and export logistics crisis. By product group, revenue
of facial fillers and cosmeceuticals decreased, hair loss related products,
including DR.CYJ fillers, grew 27.5% for professional use and 62.3% for home
care use compared to the same period last year. Peptide raw material sales also
grew 43.2% YoY, continuing the high growth rate from the previous quarter. Operating profit was KRW 6
billion, a decrease of 24.3% compared to the same period of the previous year,
due to an increase in labor costs and commissions related to the health
functional food and pharmaceutical business. Net income increased 0.7%
year-on-year to KRW 6.5 billion due to non-operating financial income due to
the increase in the KRW/USD exchange rate. Regarding the health
functional food business and the pharmaceutical business, 'Deglusterol', a
health functional food with blood sugar control function, is expected to be
approved by the Ministry of Food and Drug Safety as an individually recognized
raw material. In order to advance into the global health functional food
market, we are also working with global CRO INTERTEK to apply for approval from
regulatory agencies in the United States and Europe. Nasal spray-type Covid-19
treatment 'SpikeDown' and wet macular degeneration treatment are also about to
submit to the US FDA for IND. YJ Chung, CEO of Caregen,
said, "The third quarter was a difficult quarter when the business
environment deteriorated due to the spread of the Corona 19 delta mutation and
increase in logistics-related costs. The fourth quarter will be a time to turn
around sales through more aggressive overseas marketing with ‘With Corona’, and
take the health functional food and pharmaceutical business to the next level.”
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