GeoYoung, a domestic pharmaceuticals distribution corporation, reported on the 9th that its consolidated operating profit fell 13.18% year-on-year to 81.1 billion won. During the same period, sales increased by 5.23% compared to the previous year, reaching 4.57 trillion won.
GeoYoung cited large-scale logistics infrastructure investments, including the Smart Hub Center, and adjustments due to changes in accounting standards as reasons for the decrease in operating profit.
The company noted it recorded sales of 4 trillion won for three consecutive years. High performance was attributed to expanding value-added businesses such as third-party logistics (3PL) and fourth-party logistics (4PL) through partnerships with multinational pharmaceutical companies, which significantly contributed to the growth of the pharmaceuticals distribution sector.
3PL refers to services that handle logistics tasks such as transportation and storage of customer products. 4PL denotes a more comprehensive 'end-to-end' service that takes full responsibility for the customer’s supply chain. Additionally, GeoYoung explained that the achievement of such sales was bolstered by the implementation of smart logistics systems and the enhancement of IT-based logistics infrastructure.
In its core institutional sector of pharmaceuticals distribution, the company strengthened its management and distribution capabilities for biological agents and maintained a supply system in the public health sector including rare essential medicines and clinical medicines, achieving notable results. The operation of the Smart Hub Center, a key hub for the future of pharmaceuticals distribution, also played a role. This center, built on an artificial intelligence (AI)-based automated logistics system and environmentally friendly design, commenced full operations this year.
GeoYoung plans to intensify its transition to a 'comprehensive healthcare platform' this year and accelerate efforts to improve logistics network efficiency.
Chairman Cho Seon-hye noted, '2025 should be the year when the growth foundation we have prepared so far is converted into visible results,' adding, 'While flexibly responding to market changes, we will focus on being a distribution corporation that adheres to principles and contributes to public health.'