Huons Global Reports 575.6 Billion KRW in Sales Last Year... Operating Profit Down 16%

[Asia Economy Reporter Lee Chun-hee] Huons Group continued its sales growth last year. However, operating profit and net income decreased compared to the previous year due to increased research and development (R&D) expenses.

Huons Global, the holding company of Huons Group, announced on the 22nd that its consolidated financial statements for 2021 showed sales of 575.63712 billion KRW, a 10.1% increase from the previous year, setting a record high in sales. However, operating profit was 74.98564 billion KRW and net income was 30.762 billion KRW, down 16.0% and 66.2%, respectively.

Huons Global has maintained its sales growth trend since surpassing 500 billion KRW in annual sales for the first time in 2020 amid the prolonged economic downturn caused by COVID-19. In particular, its major subsidiaries Huons and Humedics achieved steady sales of 436.9 billion KRW and 111 billion KRW, respectively, by riding the upward trend in their core businesses of pharmaceuticals, health functional foods, and aesthetics. Also, Huons Biopharma, which was spun off from Huons Global in April last year, achieved sales of 15.2 billion KRW in just three quarters, and Huons Blossom, incorporated into the group last year, recorded sales of 16 billion KRW.

Regarding the decrease in operating profit, the company explained that it was due to advertising expenses and R&D costs incurred by subsidiaries, stating, "These are investment costs reflected to secure future momentum." In the health functional food business, advertising expenses and commission fees increased as initial costs to establish the brand, and depreciation expenses from factory facility investments such as the establishment of an eye drop product line, as well as increased R&D costs for pharmaceutical pipelines, were factors in the decline in operating profit.

The decrease in net income was explained as reflecting a 3.2 billion KRW equity method loss from affiliates without cash outflow and goodwill impairment losses of 27.4 billion KRW from subsidiaries and sub-subsidiaries.

A Huons Global official said, “Although domestic and international economic recovery has been delayed due to the prolonged COVID-19 pandemic, we were able to continue sales growth by showing good results in business diversification. We will maintain the growth trend this year by leading value management and internal growth and continue sustainable growth.”

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