Export Negotiations Underway in Various Regions
EOFlow Co., a wearable healthcare company, announced its provisional financial statements for the full year of 2021 on Feb. 14, 2022, after the close of the financial markets.
EOFlow announced its provisional consolidated financial statements: full year 2021 revenue of 693.3 million won, an increase of 3,101.5% compared to the prior year, operating loss of 26.9 billion won, and net loss of 29.4 billion won.
“EOFlow’s disposable wearable insulin pump ‘EOPatch’ was fully launched in South Korea in April and the company expanded its reach to Europe, starting with the first shipment completed in September. Our European partner company, Menarini will progressively launch the product in Europe from the first half of 2022, which can lead to significant sales growth," an IR official at EOFlow said.
Operating deficit grew due to increased expenditures in the areas of sales, general and administrative expenses (SG&A), R&D expenses, and depreciation expenses from the increase of fixed assets, mainly in the area of manufacturing. The deficit is expected to decline quickly as sales volume increase in 2022.
“We are currently setting up automated manufacturing lines to enable EOFlow to transition from use of contract manufacturing to its own fully equipped manufacturing of EOPatch. These facility investments will significantly improve our profitability from 2023, and our key focus for this year of 2022 is to firmly establish a foothold for continued and strong business growth," the IR officer added.
“Export negotiations are also underway in various regions. The company will continue to add new regions and orders in 2022 and sales volume will improve further," he added, "2022 will be a great year when earnings should improve every quarter."
The 2021 financial results are subject to finalization in connection with the preparation of the company’s annual report for the year ended Dec. 31, 2021. The annual report is to be submitted to the Korean Financial Supervisory Service within March 31, 2022.