Yuhan Corporation announced on February 12th that its consolidated sales for the past year were provisionally estimated at 2,067.8 billion KRW, a 11.2% increase from the previous year. This marks the first time that Yuhan Corporation has surpassed 2 trillion KRW in annual sales.
However, operating profit for the same period was 47.7 billion KRW, a 16.4% decrease from the previous year. Net profit also decreased by 64.3% to 48 billion KRW.
Yuhan Corporation explained that the increase in consolidated sales was due to increased technology export license revenue and increased sales of its subsidiaries.
The company cited increased research and development expenses as the reason for the decrease in operating profit. Research and development expenses invested last year amounted to 277.1 billion KRW (consolidated basis), an increase of 111.6 billion KRW from the previous year. The decrease in operating profit of subsidiaries was also a factor in the decline in profitability.
Regarding the decrease in net profit, the company cited a decrease of 36.4 billion KRW in gains from the disposal of investment stocks in related companies, an increase of 33.4 billion KRW in impairment losses on tangible and intangible assets, and an increase of 14.3 billion KRW in losses on valuation of investment stocks in related companies as the main reasons.
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