HPO Records 47.7 Billion KRW in Q1 Sales and 5.5 Billion KRW in Operating Profit

[Asia Economy Reporter Hyungsoo Park] Health functional food company HPIO announced on the 12th that it recorded sales of 47.7 billion KRW and operating profit of 5.5 billion KRW on a consolidated basis in the first quarter of this year. These represent increases of 11.6% and 14.9%, respectively, compared to the previous quarter.

Following the fourth quarter of last year, consolidated sales continued to achieve the highest quarterly performance ever. The operating profit margin also rose by 0.4 percentage points compared to the previous quarter. Earnings before income tax, reflecting non-operating gains and losses, reached 6.3 billion KRW, up 17.9% from the fourth quarter.

Net profit decreased by 7.8% to 4.4 billion KRW due to accounting expenses (deferred corporate tax) reflecting the increase in asset value from the subsidiary’s paid-in capital increase.

An HPIO official stated, "Since the second half of last year, competition in the domestic health functional food market has intensified," adding, "HPIO is diversifying its business structure and maintaining a stable growth trend on a consolidated basis." He continued, "The overseas business and specialized manufacturing subsidiaries, which grew by approximately 60% and 20% respectively last year, also recorded their highest-ever sales in the first quarter of this year."

He further said, "The premium pet business ‘Copenhagen Recipe’ has been investing a considerable amount in initial business investment and marketing from last year through early this year," adding, "We expect the investment results to start materializing in earnest from the second quarter of this year."

Additionally, he said, "GeoInfoTech, the premium kickboard business, is also expected to contribute more to performance starting from the second quarter, which is the peak season, compared to the first quarter, which is the off-season."

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