1. SK bioscience Q2 Earnings: What Happened?

SK bioscience reported revenue of KRW 161.9 billion and an operating loss of KRW 37.4 billion in Q2 2025. While revenue increased by 4.7% compared to the previous quarter, the operating loss widened by a staggering 147.7%, leading to an earnings shock. Net loss also increased significantly by 302.4% to KRW 16.5 billion.

2. Why the Disappointing Performance?

  • Rising Raw Material Prices and Exchange Rate Impact: The continuing upward trend in raw material prices negatively impacted profitability. Exchange rate fluctuations also contributed to the unfavorable results.
  • Increased SG&A Expenses: Despite the increase in revenue, rising selling, general, and administrative expenses continued to pressure profitability.
  • Decline in Proprietary Vaccine Sales: Decreased demand for vaccines post-COVID-19 pandemic and increased competition led to a decline in sales of SK bioscience’s own vaccine products.
  • Limited Impact of IDT Biologika Acquisition: The anticipated positive impact of the IDT Biologika acquisition, mentioned in the Q1 report, did not materialize significantly in Q2.

3. What Should Investors Do?

In the short term, investors should be wary of increased stock price volatility. For the mid-to-long term, consider the following factors:

  • Cost Competitiveness and SG&A Efficiency: Improving cost management and streamlining SG&A expenses are crucial for SK bioscience to enhance profitability.
  • Next-Generation Vaccine Development and CDMO Business Growth: Focus on the development of next-generation vaccines and the expansion of the CDMO business to secure new growth drivers.
  • Monitoring Macroeconomic Conditions: Managing risks associated with changes in macroeconomic conditions, such as interest rate hikes and exchange rate fluctuations, is essential.

Continuously monitor future earnings announcements and market conditions to adjust your investment strategy accordingly.