L&C BIO (290650) Q4 2025 earnings summary

Executive summary

• Revenue increased 19% year-over-year to KRW 85.5 billion on a consolidated basis, with gross profit up 27% and gross margin improving to 53%.

• Operating income rose 14% to KRW 4.4 billion, but net income turned to a loss of KRW -138.2 billion due to large non-cash losses from convertible bond derivatives and China subsidiary impairment.

• Cash flow from operations improved to KRW 12.6 billion from a negative KRW -8.6 billion the prior year.

Financial highlights

• Consolidated revenue: KRW 85.5 billion (+19% YoY); gross profit: KRW 45.4 billion (+27% YoY); gross margin: 53%.

• Operating income: KRW 4.4 billion (+14% YoY); operating margin: 5%.

• Net loss: KRW -138.2 billion (vs. profit of KRW 141.5 billion prior year), driven by KRW 110.3 billion derivative loss and KRW 72.5 billion China subsidiary impairment.

• Cash and equivalents: KRW 309 billion (+69% YoY); total assets: KRW 456.6 billion (-3% YoY); equity: KRW 208.5 billion (-28% YoY).

• Debt ratio: 119% (up from 62%); equity ratio: 46% (down from 62%).

Outlook and guidance

• Management expects core business growth and improved cash generation to continue.

• Non-cash losses from derivatives and subsidiary impairment are considered temporary and not expected to impact future cash flows.