Huons Global, 2Q Operating Profit Up 77% YoY... 'Record High Performance'

Sales of 193.7 Billion KRW... 15.6% Increase Year-on-Year

Huons Group recorded its highest-ever performance in the second quarter of this year.

Huons Second Factory. [Photo by Huons]

Huons Group's holding company, Huons Global, announced on the 14th that it posted an operating profit of 36.5 billion KRW in the second quarter of this year. This represents a 77.2% increase compared to the same period last year. During the same period, sales increased by 15.6% to 193.7 billion KRW.

Huons Global explained that the growth was driven by strengthening key business sectors of its listed subsidiaries such as Huons, Humedix, and HuM&C, each achieving record-high performances, as well as the growth of unlisted subsidiaries like Huons Biopharma.

Huons recorded consolidated sales of 140.7 billion KRW and an operating profit of 17.9 billion KRW in the second quarter of this year. These figures represent increases of 13.4% and 64.5%, respectively, compared to the same period last year. Sales in the prescription drug sector grew by 32% year-on-year to 66.3 billion KRW, while sales in the beauty and well-being sector increased by 9% to 49.4 billion KRW. The Contract Manufacturing Organization (CMO) business also maintained solid performance with sales of 16.8 billion KRW.

In particular, exports of anesthetics to the U.S. increased by 108% year-on-year, reaching 7.1 billion KRW. Sales of four products, including local anesthetics that received Abbreviated New Drug Application (ANDA) approval from the U.S. Food and Drug Administration (FDA) in the first half of the year, reached 12.7 billion KRW, surpassing last year's annual sales of 12.3 billion KRW.

Humedix, an aesthetic subsidiary, posted individual sales of 39.8 billion KRW and an operating profit of 11.4 billion KRW in the second quarter, growing 25% and 49%, respectively, compared to the previous year. Humedix showed balanced growth across all business sectors, including aesthetics centered on Ellavie fillers and Riztox, as well as CMO.

The aesthetic business saw a significant increase in demand for fillers (Ellavie Premier, Revoline) and botulinum toxin (Riztox) in domestic plastic surgery and dermatology clinics, attributed to the endemic phase of COVID-19. Additionally, filler exports increased due to China's reopening of economic activities, and overseas filler demand surged in Brazil and South America. The CMO business grew due to increased sales of new vial injectables and increased orders for prescription drugs and disposable eye drops.

HuM&C, a healthcare materials subsidiary, recorded individual sales of 12.6 billion KRW and an operating profit of 1.4 billion KRW in the second quarter. These figures represent 9% and 38% growth, respectively, compared to the same period last year, marking the highest quarterly performance. HuM&C's glass business performed well. With the expansion of the medical container and cosmeceutical markets, the glass business posted sales of 9.3 billion KRW, a 24% increase compared to the same period last year. HuM&C recently decided to establish a glass production plant in Vietnam.

Huons Biopharma, which researches biopharmaceuticals and manufactures botulinum toxin, achieved sales of 12.7 billion KRW and an operating profit of 4.4 billion KRW, benefiting from increased export-based demand and improved cost ratios. These figures represent growth of 48% and 130%, respectively, compared to the same period last year. To prepare for increased demand, Huons Biopharma broke ground last month on a new bio factory scheduled for completion in 2024. Huons Meditech, an unlisted medical device subsidiary, achieved sales of 15.1 billion KRW and an operating profit of 1.4 billion KRW.

Song Soo-young, CEO of Huons Global, said, "Amid uncertain domestic and international economic conditions, we focused on innovation and structural improvement, concentrating on the strengths of all business sectors within the group, deriving strategies such as expanding exports to drive sustainable growth. Please continue to watch Huons Group as it secures a stronger foothold in the global market by finding opportunities in crises based on innovation and sound management."

Meanwhile, Huons Global and the three listed companies of Huons Group?Huons, Humedix, and HuM&C?have decided to pay interim dividends for the first time since their founding. The interim dividends will be paid at 250 KRW per share for Huons Global, 300 KRW per share for Huons, and 250 KRW per share for Humedix. The payment date is scheduled for the 25th. In February, Huons Group announced a mid- to long-term shareholder return policy, stating plans to increase dividends per share by up to 30% compared to the previous fiscal year.

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