Baropharm Achieves ₩45.5 Billion in 2024 Sales, Soaring 293% YoY

Baropharm, a frontrunner in total platform solutions for pharmacy management, achieved a remarkable 293% year-over-year growth, reaching a revenue of 45.5 billion won in 2024. Building on this explosive growth, Baropharm, which is preparing for a successful IPO, proactively adopted the Korean International Financial Reporting Standards (K-IFRS) starting with its 2024 financial audit, thereby further enhancing transparency. However, Baropharm clarifies that the appearance of 'complete capital impairment' in recently disclosed financial statements is an accounting illusion resulting from the adoption of K-IFRS. Due to a change in standards where Redeemable Convertible Preferred Stock (RCPS), previously classified as equity under Korean Generally Accepted Accounting Principles (K-GAAP), is now recognized as a liability under K-IFRS, approximately 40 billion won in cumulative investment funds raised by Baropharm and its reflection as a 56.7 billion won valuation have all been recorded as liabilities in accounting. This is an accounting figure that does not involve actual cash outflow; rather, it can be interpreted as a positive sign that demonstrates the rapid growth of the company's value. This illusion is expected to naturally resolve when the RCPS converts to common stock prior to the IPO. The current liquidity ratio of 204% clearly demonstrates Baropharm's robust financial stability. Based on this strong financial foundation and stable cash flow, Baropharm is building trust by providing its vendors with the industry's fastest and most stable weekly settlement system. Furthermore, it is gaining positive responses by offering practical assistance to small and medium-sized vendors facing liquidity challenges through its payment agency service. Currently, Baropharm offers innovative services encompassing overall pharmacy management, centering around its integrated pharmaceutical order management platform 'Baropharm.' These services include 'Ourpharm,' a premium health functional food exclusive for pharmacies, 'Fillens,' an AI solution for pharmaceutical information management, and 'Aroundpharm,' a platform connecting consumers and pharmacies. Approximately 22,000 pharmacies nationwide (over 90% of the total) use Baropharm services, boasting a strong user retention rate with high daily/monthly active users (DAU/MAU) reaching nearly 70%. Monthly transaction volume has also seen explosive expansion with an average annual growth rate (CAGR) of 86% over the past two years. Kim Seul-gi, CEO of Baropharm, stated, "We have achieved significant revenue growth despite various challenging external environments." He added, "We will continue to develop services that can provide practical assistance to pharmacists, fulfilling our role as a reliable partner in pharmacy management."