Dongkuk Pharmaceutical is accelerating its business portfolio diversification beyond its core pharmaceutical operations, with its cosmetics and health functional food segments showing rapid growth. The company's stable revenue base from OTC and prescription drugs, combined with this expansion, has raised expectations for entry into the 'KRW 1 trillion annual sales club' this year. According to the Financial Supervisory Service's electronic disclosure system on April 27, Dongkuk Pharmaceutical reported consolidated Q1 sales of KRW 251 billion, operating profit of KRW 27.3 billion, and net profit of KRW 26.3 billion. These figures represent year-on-year increases of 12.2%, 8.0%, and 46.4%, respectively. On a standalone basis, growth continued with sales of KRW 212.4 billion (up 15.9%) and operating profit of KRW 23.3 billion (up 12.3%). Analysts attribute the improved profitability to efficient selling and administrative expenses and fixed cost dilution from higher sales. Market observers are focusing on Dongkuk Pharmaceutical's potential to surpass KRW 1 trillion in annual sales this year. Last year's consolidated annual sales were approximately KRW 926.9 billion, and with the Q1 growth trajectory, achieving the KRW 1 trillion mark appears feasible. The pharmaceutical industry's typical pattern of higher second-half performance further bolsters this outlook. The Health & Beauty (H&B) business segment was the primary driver of this growth. In Q1, standalone cosmetics and other product sales reached approximately KRW 108.8 billion, accounting for 41.6% of total revenue. The flagship brand Centellian24 showed notable growth. The 'Madeca Cream,' based on the company's natural ingredient Centella Asiatica Extract (TECA), has surpassed cumulative sales of 93 million units, while the brand's total cumulative sales reached 290 million units.
Global market expansion continued, with H&B segment exports surging 332% year-on-year in Q1, driven by balanced growth across North America, Japan, China, Southeast Asia, the Middle East, and Europe. Dongkuk Pharmaceutical recently entered over 1,400 Ulta Beauty stores, the largest beauty retail chain in the U.S., and opened a B2B showroom for global buyers at its headquarters in Cheongdam-dong, Seoul. Merger and acquisition (M&A) effects are also materializing. Last year, the company acquired medical device developer Widnix and cosmetics ODM firm Libom Cosmetics as subsidiaries. This internalization of beauty device (e.g., 'Madeca Prime') and cosmetics manufacturing capabilities has enhanced cost competitiveness. The health functional food business also maintained growth. The nutraceutical brand 'My Fit' recorded cumulative sales of approximately KRW 42 billion, expanding consumer touchpoints through dedicated health food malls and offline stores. Amid new business growth, the core prescription drug (ETC) and OTC businesses continued to provide a stable revenue foundation. High-recognition OTC products such as Insadol, Madecasol, Pancidyl, and Sensia serve as a stable earnings base, supported by a nationwide pharmacy distribution network that is relatively resilient to economic fluctuations.
The ETC segment also grew, driven by an expanded portfolio of chronic disease treatments, including hyperlipidemia combination drugs and diabetes therapies, which are benefiting from aging population demand. Dongkuk Pharmaceutical is increasing R&D investment based on stable cash flow. Q1 R&D spending was KRW 8.732 billion, representing 4.1% of standalone sales. The company is focusing on developing long-acting injectables based on drug delivery system (DDS) technology, utilizing microsphere and liposome platforms for sustained drug release. The prostate cancer treatment 'DKF-MA102' completed Phase 3 clinical trials in February and is pending regulatory approval. Diabetes treatment 'DKF-447' and Alzheimer's treatment 'DKF-462' are also in preparation for launch. Additionally, the company is investing approximately KRW 60 billion in a new injectable production line at its Jincheon plant in Chungcheongbuk-do, targeting commercial operation in the second half of 2027. According to financial information provider FnGuide on April 27, Dongkuk Pharmaceutical is projected to achieve sales of KRW 1.0619 trillion and operating profit of KRW 115.4 billion in 2026, representing year-on-year increases of 14.6% and 19.5%, respectively. The company's continued expansion into new businesses and strengthened R&D investment are drawing attention to its future growth trajectory.
Source: Read the original report | Published: May 27, 2026