Huons' Operating Profit Decreased 8.4% to 49.6 Billion KRW Last Year Due to Increased Advertising Expenses

[Asia Economy Reporter Lee Seon-ae] Huons announced on the 16th that its operating profit on a consolidated basis last year recorded 49.6 billion KRW, a decrease of 8.4% compared to the previous year. Last year's sales amounted to 436.9 billion KRW, an increase of 7.4% from the previous year. Net profit for the period was 34.6 billion KRW, down 38.8% during the same period.

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Huons analyzed that the strong sales growth was driven by the female menopause probiotic brand 'Eluvi Menolacto,' which recorded sales of 37.1 billion KRW as a single brand, growing 115% compared to the previous year.

In addition, the continuous glucose monitor 'Dexcom G6,' which saw a significant increase in new users following a price reduction in July last year, was also evaluated to have supported growth.

Furthermore, prescription drugs and contract manufacturing businesses, which had stagnated due to the prolonged COVID-19 pandemic since 2020, entered a recovery phase, growing by 7% and 8%, respectively.

Meanwhile, the company explained that the decrease in operating profit was largely due to increased advertising expenses and commission fees associated with the expansion of the health functional food business. Increased research and development costs for expanding the pharmaceutical pipeline were also reflected.

Huons Natural achieved an operating profit of 1.1 billion KRW and sales of 18.3 billion KRW last year, growing 1% and 16%, respectively, compared to the previous year, while Huons Nature recorded sales of 22.1 billion KRW, down 27% from the previous year. The two companies merged on January 3 this year to newly launch Huons Foodience.

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