Osstem Implant, Subsidiary Reorganization Continues... "Rebound Through Structural Improvement"

[Financial News] Osstem Implant is reorganizing its subsidiaries through successive mergers to improve its structure. The strategy is to enhance management efficiency and increase corporate value through financial structure stabilization and business integration.
Osstem Implant is a total solution company providing everything needed from the opening to the operation of a dental clinic, including dental implants, △ diagnostic imaging equipment and supplies △ pharmaceuticals such as graft materials and whiteners △ software services for dental operations (IT) △ interior design △ educational business. It holds the number one market share domestically and the third globally, expanding its influence.
According to Osstem Implant on the 7th, the board of directors of Osstem Implant's Brazilian corporation resolved to merge with its great-grandchild company Impracil de Bortoli last July, and the merger is scheduled for next January. After proceeding with a reverse merger with the great-grandchild company, the company name will be changed to 'Impracil Osstem'.
Additionally, it recently announced the absorption merger of its subsidiary Osstem Global, in which it holds a 98.96% stake. Osstem Global is a company engaged in the development and sale of dental X-ray imaging devices and real estate development business. 
In January of this year, it also absorbed its 100% subsidiary Top Plan Co., Ltd. Top Plan is a company that sells surgical instruments such as implants and bone graft materials needed for implant procedures.
Osstem Implant stated that there are currently no decisions related to the structural reorganization of companies that have completed mergers or are in progress or planned. 
An Osstem Implant representative explained, "It is not a matter of restructuring companies that are not operating well," adding, "Even if a merger occurs, the subsidiary's business, personnel, and research methods remain the same as before the merger. We aim to achieve management efficiency by merging places where significant improvement benefits are expected."
Meanwhile, based on Osstem Implant's consolidated financial statements, sales for the first half of this year amounted to approximately 656.8 billion won, a decrease of about 1.1% compared to approximately 664.4 billion won in the same period last year. Operating profit was approximately 41.9 billion won, a decrease of about 62.4% compared to approximately 111.8 billion won in the same period last year.
An Osstem Implant representative added, "Recently, fixed costs have increased significantly due to the expansion of research and development (R&D) or sales personnel. Especially when establishing overseas corporations, not only personnel but also office infrastructure must be prepared, leading to increased investment costs," adding, "The severe recession in China, which is a major export market, also has an impact."

kaya@fnnews.com Choi Hye-rim Reporter