Huons Reports KRW 156 Billion in Q2 Sales: "Highest-Ever Quarterly Revenue"

Huons achieved its highest-ever quarterly sales in the second quarter of this year.

On August 6, Huons announced that its provisional consolidated financial results for the second quarter of this year recorded sales of 156 billion KRW, operating profit of 13.1 billion KRW, and net profit of 11.8 billion KRW. Compared to the same period last year, these figures increased by 4.7%, 40.3%, and 46.5%, respectively.

Quarterly sales exceeded 150 billion KRW, setting a new record for the company. Operating profit also saw a significant increase compared to the same period last year, continuing the profitability improvement trend that began in the first quarter.

In the second quarter, all of Huons' business divisions showed balanced growth, and the performance of its subsidiaries also improved. Huonsen, a subsidiary specializing in health functional foods, and Huons Life Science, a finished pharmaceutical manufacturing and sales company, both completed their spin-off and merger process in May and successfully turned to profit. In addition, PanGen, which was acquired at the end of last year, was included as a consolidated subsidiary starting from June of this year.

By business division, the prescription drug division recorded second-quarter sales of 69.1 billion KRW. Led by metabolic disease drugs and injectable exports, the division maintained stable growth, increasing by 3.9% compared to the same period last year. Notably, exports of injectables to North America in the second quarter amounted to 5.4 billion KRW, a 51% increase year-on-year.

Sales in the beauty and wellness division decreased by 13.3% year-on-year to 42.2 billion KRW, as results from the health functional food business were transferred to Huonsen starting in May. Excluding the health functional food business, beauty and wellness sales increased by 7.7% to 37 billion KRW, driven by strong sales of the continuous glucose monitor Dexcom G7.

Huons' R&D expenses in the second quarter were 9.8 billion KRW, up 9.8% from the same period last year. Sales from the contract manufacturing organization (CMO) business increased by 7.4% to 20.8 billion KRW. This was due to increased contract manufacturing sales of eye drops following the operation of the second plant's eye drop line, as well as increased pharmaceutical contract manufacturing.

In May, Huons received ANDA (Abbreviated New Drug Application) approval from the U.S. Food and Drug Administration (FDA) for its '1% Lidocaine Injectable Multidose Vial' and '2% Lidocaine Injectable Multidose Vial.' The company plans to expand its export portfolio to the U.S. by pursuing new registrations for dental local anesthetics in the future.

Huons aims to achieve both sales growth and improved profitability in the second half of the year through the new injectable line at its second plant, which is scheduled to begin operation in the third quarter.

Huonsen, the health functional food subsidiary, recorded second-quarter sales of 18.7 billion KRW, up 76.7% year-on-year.

Song Sooyoung, CEO of Huons, stated, "We achieved record quarterly results thanks to the stable growth of our existing businesses and the growth momentum of our subsidiaries. With the spin-off and merger of the health functional food division completed and new production facilities set to begin full-scale operation in the second half, we will continue to pursue both steady top-line growth and profitability."

Meanwhile, on the same day, Huons' board of directors decided to pay a cash dividend of 150 KRW per share and set the record date for the dividend as August 21. In accordance with the revised Capital Markets Act, which aligns the record date with the date of the dividend resolution, the record date was changed from June 30 to after the dividend decision announcement.

The per-share dividend for this interim period decreased slightly compared to last year. The company determined the per-share dividend by taking into account the rapidly changing business environment, but stated that it would maintain its existing policy of increasing the total annual dividend, including the year-end dividend, by 0?30% compared to the previous year. In addition, the capital reserve reduction and the reduced dividend using this reserve, which were approved at this year's regular general shareholders' meeting, cannot be applied to this interim dividend but will be applicable starting with the year-end dividend. Therefore, if the year-end dividend is increased, shareholders' tax-free benefit from the reduced dividend is also expected to increase.

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