Record High Profits
KDB Daewoo Securities announced on Feb. 24 that Osstem Implant will see strong growth in the domestic market and the rapid reduction of overseas losses this year.
Kim Hyun-tae, an analyst at KDB Daewoo Securities, said, "Thanks to the growth of dental implants and chairs, we expect growth in domestic demand this year. Particularly, the implant sector will grow, as the government is to expand the coverage for dental implant insurance to those aged 70 years or older this July."
Due to the aging population at home and abroad, the sector is expected to record the highest annual sales this year. The operational profit is estimated to be 40 billion won (US$35.98 billion), a 38.9 percent increase from last year. Sales are expected to increase by 19.4 percent to 285 billion won (US$256.34 million).
In the second half of this year, new products will come out, including an implant with an improved osseointegration and panorama.
Kim also said, "Thanks to the efforts of its workforce reshuffle, sales this year will normalize, and this, in turn, will reduce losses. Sales will be up 10.4 percent from last year, and the losses will drop sharply to 1.5 billion won (US$1.35 million)."
He added, "Since the company reshuffled its subsidiaries abroad, performance is expected to improve. With the dominating power in the dental clinic channel, the sales at home and abroad will go up as well as its market share."
Meanwhile, Osstem Implant’s operating profits in the fourth quarter last year grew by 52.8 percent to 1.1 billion won (US$9.89 million) from the same period a year ago, while sales increased by 10.3 percent to 67.6 billion won (US$60.8 million), a record high quarterly performance.