SG&A ratio also decreased by 1.2%p… only Hanmi pharmaceutical dropped
In the third quarter, the cost of sales burden for top pharmaceutical companies decreased slightly.
The average cost of goods sold (COGS) ratio of six top pharmaceutical companies, including GC Pharma, Yuhan Corporation, Chong Kun Dang Pharmaceutical, Hanmi Pharmaceutical, Daewoong Pharmaceutical, and Dong-A ST, fell 3.0% YoY to 59.3% in 3Q, according to a recently released report.
Daewoong Pharmaceutical’s COGS ratio plunged 6.25%p from 61.1% to 54.9%, GC Pharma fell 5.7%p from 65.9% to 60.2%, Hanmi Pharmaceutical 5.5%p from 52.6% to 47.1%, and Dong-A ST 5.5%p from 54.2% to 48.7%.
During the same period, Yuhan Corporation’s COGS ratio rose 2.3%p from 68.3% to 70.6%, and Chong Kun Dang Pharmaceutical also slightly expanded from 62.2% to 62.3%.
The average selling, general & administrative expenses (SG&A) of the six companies also dropped 1.2%p from 31.4% to 30.2%, the lowest since the COVID-19 pandemic began.
Only Hanmi Pharmaceutical succeeded in lowering the SG&A ratio.
The SG&A ratio of GC Pharma and Chong Kun Dang Pharmaceutical rose 2.6%p YoY, Dong-A ST 1.3%p, and Yuhan Corporation 1.0%p, while Daewoong Pharmaceutical remained at the same level.
Nevertheless, as Hanmi Pharmaceutical’s SG&A ratio decreased by 18.8%p from 59.5% to 40.7%, or by KRW 35.2 billion from KRW 158.7 billion to KRW 123.5 billion, the average SG&A ratio of six companies also declined significantly.
