Hugel Achieves Record Quarterly Performance with Operating Profit Margin Reaching 46.2%

Botulinum Toxin and HA Fillers Show Domestic and International Progress
Botulinum Toxin Rapidly Establishes in Chinese Market
Targeting US Approval Application and European Approval in Second Half of the Year

[Asia Economy Reporter Hyungsoo Park] Hugel continues its solid growth by achieving the highest quarterly operating profit in its history.

Hugel announced on the 11th that it recorded sales of KRW 63,823,580,000, operating profit of KRW 29,458,270,000, and net profit of KRW 19,433,810,000 based on consolidated financial statements for the first quarter of this year.

Sales increased by 54.7% compared to the same period last year, and operating profit rose by 139.3%. The operating profit margin recorded 46.2%, up 16.3 percentage points from the same period last year. It achieved results surpassing the pre-COVID-19 performance, continuing a steep upward trend.

In the domestic market, the botulinum toxin product ‘Botulax’ and HA filler ‘The Chaeum’ recorded growth rates of 111% and 46%, respectively, compared to the same period last year. Botulax, which dominated the domestic market by surpassing a 50% market share last year, solidified its leading position while maintaining its market share. The Chaeum, which has been the number one domestic HA filler brand since 2019, continued its stable growth trend. The synergy effect from cross-selling with Botulax, along with active B2C marketing activities such as YouTube advertisements and consumer participation events, also contributed.

Growth is also occurring in overseas markets. Hugel entered the Chinese botulinum toxin market in October last year as the first Korean company to do so. Full-scale sales began this year. Sales grew steadily by 103% year-on-year, led by China and supported by Thailand and the LATAM region. HA fillers also grew steadily by 18.9% year-on-year, mainly in Asia and Latin America.

Hugel’s growth momentum is expected to continue for the time being. In the case of botulinum toxin, ‘Letivo’ was officially launched in the Chinese market through an online launch event in February and has since been supplied to about 900 medical institutions. It appears to be settling in the market faster than expected. In March, Hugel established the ‘Hugel Shanghai Aesthetic’ corporation in Shanghai and launched the academic network ‘C-GEM (China-Global Expert Members)’ composed of local Chinese beauty and plastic surgery experts.

From the 22nd to the 26th of last month, Hugel held the ‘Letivo Launch Conference’ both online and offline in Hangzhou, Wuhan, Sancheon, Chengdu, and Beijing for five days. Hundreds of medical institutions, medical beauty industry workers, broadcasters, models, and influencers attended in large numbers. Hugel implemented its unique academic marketing strategy in addition to the medical aesthetic sales and marketing personnel and distribution channels of Sahwan Pharmaceutical. The company plans to achieve at least a 10% market share this year in the Chinese botulinum toxin market, estimated to be worth about KRW 600 billion.

Hugel is entering large overseas markets, led by China. It submitted a European BLA for its botulinum toxin in June last year and expects sales approval in the second half of this year. Additionally, it completed the US BLA submission in March. Since approval usually takes about one year, it is expected to obtain sales approval in the first half of next year.

A Hugel official said, "In the first quarter, sales in China, one of the ‘Big 3’ markets, began in earnest, resulting in balanced growth domestically and overseas," adding, "We aim for 25% sales growth this year by continuing this growth trend."

He continued, "In the second quarter, we will fully operate the new HA filler factory, and in the second half of the year, we will obtain European botulinum toxin approval. We will make every effort to strengthen global competitiveness with the goal of joining the 1 trillion KRW club by 2025."

This content was produced with the assistance of AI translation services.