[Edaily Reporter KIM SAE-MI ] SD Biosensor(137310)returned to a quarterly operating profit in the third quarter of this year for the first time in four years. Sales growth of core diagnostic products, improvements in the cost structure, and cost efficiency drove the recovery in profitability.

SD Biosensor announced on the 13th that its consolidated operating profit for the third quarter of this year was 4.7 billion won, marking a return to profitability from a loss of 14.0 billion won in the same period last year. Revenue for the same period increased by 14.9% to 188.6 billion won. The net loss widened to 111.3 billion won compared to a net loss of 9.9 billion won in the same period last year. The third-quarter operating profit margin stood at 2.5%.

Despite returning to operating profitability, the net loss swelled to 111.3 billion won—11.2 times the 9.9 billion won net loss recorded in the same period last year. This was due to factors such as foreign currency translation losses resulting from the decline in the won-dollar exchange rate. Foreign currency translation losses for the third quarter totaled 68.6 billion won, and valuation losses on financial assets amounted to 10.3 billion won.

Cumulative revenue for the first three quarters of this year was 568.7 billion won, a 10.2% increase compared to the same period last year. Cumulative operating loss for the same period was 14.2 billion won, a 71.2% reduction from the 49.1 billion won loss recorded in the same period last year. Cumulative net income turned from a surplus of 246.4 billion won in the same period last year to a deficit of 72.7 billion won this year. The company explained that this reflected foreign currency translation losses on its dollar-denominated assets due to the decline in the won-dollar exchange rate.

The improvement in profitability was driven by increased sales of core diagnostic products. Cumulative revenue on a standalone basis for the point-of-care molecular diagnostic platform “STANDARD M10” reached 34 billion won, a 78% increase compared to the same period last year. Cumulative revenue for the rapid diagnostic product “STANDARD Q” also rose by 21.3% to 86.6 billion won. This was driven by expanded sales in Africa, particularly for diagnostic products targeting malaria and sexually transmitted infections.

The performance of overseas subsidiaries also improved. The subsidiaries in India and Spain turned to operating profits, driven by growth in cumulative sales. The subsidiaries in Italy, Panama, and Colombia also maintained a profitable trend.

The company’s financial structure continued to improve. On a consolidated basis, long-term debt decreased by 76.1%, from 346.8 billion won at the end of last year to 82.7 billion won at the end of September this year. All convertible bonds were also fully repaid. During the same period, the debt-to-equity ratio fell by 26.2 percentage points (p), from 38.8% to 12.6%.

An SD Biosensor official stated, “This return to profitability is highly significant in that the efforts to improve our business structure and streamline operations—which have continued since the end of the pandemic—have yielded tangible results,” adding, “We will continue to build a stable and sustainable profit structure by strengthening the competitiveness of our core products and expanding into global markets.”