1. What Happened? Ildong Holdings Q2 2025 Earnings Breakdown

Ildong Holdings reported KRW 154.7 billion in revenue, KRW 300 million in operating profit, and a net loss of KRW 8.9 billion for Q2 2025. This represents a slight decrease in revenue year-over-year, and a dramatic drop in operating profit and net income of 92.7% and 71.2%, respectively, compared to the same period last year. The figures also represent a worsening trend from Q1 2025.

2. Why the Decline? Analyzing the Factors Behind the Poor Performance

  • Continued Decline in Ildong Pharmaceutical Sales: The end of the COVID-19 pandemic and increased competition continue to negatively impact sales at Ildong Pharmaceutical, Ildong Holdings’ key subsidiary. The slower-than-expected rollout of Xocova in overseas markets has also contributed to the decline.
  • Underperformance of Other Subsidiaries: Other subsidiaries, such as Ildong Bioscience and Loutech, are also expected to have reported weak performance, likely due to increased competition in the probiotics and hyaluronic acid markets.
  • Increased R&D Spending: While investment in new drug development is positive in the long term, it has put pressure on short-term profitability.

3. What’s Next? Outlook and Investment Strategies

The success of Xocova’s entry into the US market will be a key factor in determining the future trajectory of Ildong Holdings’ stock price. The performance of other subsidiaries and the company’s efforts to improve its financial structure will also play important roles. While the short-term outlook is uncertain, the potential of Xocova and the diversification efforts of its subsidiaries offer some positive aspects for a mid-to-long-term perspective. Investors should proceed with caution and manage risk effectively.

4. What Action Should Investors Take?

Investors should closely monitor the following:

  • Progress and performance of Xocova’s US market entry
  • Performance improvement strategies and results of other subsidiaries
  • Overall efforts to improve the financial structure

Careful analysis and risk management are crucial for making informed investment decisions.