Huons Reports 123.1 Billion KRW in Q3 Sales... Stable Growth in Prescription Drugs, Beauty, and Health Supplements

[Asia Economy Reporter Lee Gwan-ju] Huons announced on the 4th that its consolidated sales for the third quarter were tentatively estimated at 123.1 billion KRW, a 10% increase compared to the same period last year, while operating profit decreased by 86% to 2 billion KRW.

Huons' third-quarter sales continued to rise, supported by stable growth in the prescription drug sector and the beauty & well-being sector. However, operating profit temporarily declined due to the recognition of bad debt expenses incurred in overseas operations.

Huons reflected a one-time bad debt expense of 5.6 billion KRW arising from the expansion of its overseas business. The company explained that personal protective equipment (PPE) exported through its U.S. subsidiary in 2020 became difficult to sell due to the lifting of COVID-19 quarantine measures, and thus the entire amount of uncollected accounts receivable was proactively recorded as a bad debt allowance.

The prescription drug sector achieved quarterly record sales of 52.8 billion KRW, a 4% increase from the same period last year, driven by sales growth in anesthetics and cardiovascular system drugs. Anesthetics, led by lidocaine, surpassed 10 billion KRW in U.S. export sales for the first time in a quarter. Cardiovascular system drugs, including those for hypertension and hyperlipidemia, also recorded 14.3 billion KRW, continuing growth for the third consecutive quarter.

The beauty & well-being sector posted sales of 44.6 billion KRW, a 17% increase year-on-year. The health functional food business saw its menopause probiotic Menolacto exceed 10 billion KRW in sales for the second consecutive quarter, while the diet functional food Salsarajin Lactoferrin achieved 4.7 billion KRW in sales, a 22% increase from the previous quarter, contributing to total sales of 16.9 billion KRW. The medical device business also contributed to growth with a 7% year-on-year increase to 4 billion KRW in sales, driven by increased sales of the Dexcom G6 blood glucose monitor and COVID-19 diagnostic kits.

The contract manufacturing business recorded sales of 14.9 billion KRW. Pharmaceutical contract manufacturing increased by 10% year-on-year to 7.9 billion KRW, while ophthalmic solution contract manufacturing decreased by 9% to 7 billion KRW. Huons Foodience, a health functional food subsidiary, also maintained its growth trend. With increased export and OEM sales, third-quarter sales rose 21% year-on-year to 12.7 billion KRW, and operating profit reached 1 billion KRW, marking the first profit since the merger.

Song Soo-young, CEO of Huons, stated, “Despite uncertain external conditions, Huons has continued to achieve remarkable growth every year. We will organize our expanded business areas and strengthen internal management to maximize profitability alongside external growth.”

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