L&C BIO (290650) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was KRW 34.5 billion (consolidated), down from KRW 68.9 billion in H1 2023; operating profit was KRW 3.0 billion, down from KRW 7.7 billion year-over-year.

• Net income attributable to controlling interests was KRW 2.6 billion, a significant decrease from KRW 48.4 billion in H1 2023.

• The company maintains a strong position in the bioengineering sector, focusing on human tissue grafts, medical devices, and cosmeceuticals.

Financial highlights

• Consolidated assets at June 30, 2024: KRW 258.0 billion; liabilities: KRW 98.8 billion; equity: KRW 159.2 billion.

• Basic EPS for H1 2024 was KRW 115, down from KRW 2,132 in H1 2023.

• Cash and cash equivalents at period end: KRW 8.6 billion (consolidated).

• R&D expenses (consolidated) for H1 2024: KRW 2.3 billion, representing 5.39% of sales.

Outlook and guidance

• The company is expanding indications for its flagship products and entering new global markets, especially in Asia.

• Regulatory changes and government support are expected to benefit the regenerative medicine and medical device sectors.

• Continued investment in R&D and new product launches are planned, with a focus on next-generation tissue-based medical devices.