Huons Reports Q3 Revenue of 153.7 Billion Won and Operating Profit of 9.9 Billion Won, Both Up Year-on-Year

Huons achieved simultaneous growth in both revenue and operating profit in the third quarter of this year compared to the same period last year, driven by a recovery in injectable exports to the United States and an increase in contract manufacturing (CMO) of ophthalmic solutions.

On November 10, Huons announced its provisional third-quarter consolidated financial results, reporting revenue of 153.7 billion won, operating profit of 9.9 billion won, and net profit of 8.2 billion won. These figures represent year-on-year increases of 4.7%, 13.7%, and 13.3%, respectively.

Third-quarter revenue continued to grow, mainly led by the specialty pharmaceuticals and contract manufacturing (CMO) divisions, including exports of anesthetics.

By business segment, specialty pharmaceuticals recorded revenue of 70 billion won, up 5.1% from last year, ensuring stable growth. In particular, sales of the flagship anesthetic products increased by 44% year-on-year. Exports of injectables rose by 51% compared to the previous year, reflecting a recovery in exports to the United States, which had been sluggish last year.

The beauty and wellness business recorded revenue of 35.3 billion won (27.6%), as the health functional food business unit was transferred to Huonsen through a spin-off and merger in May. Excluding the health functional food business, revenue stood at 34.7 billion won (0.1%).

The contract manufacturing (CMO) division recorded revenue of 19.9 billion won (28.0%). Due to increased utilization of the ophthalmic solution line at the second plant, contract manufacturing revenue from ophthalmic solutions grew by 14% compared to the same period last year. Contract manufacturing revenue from pharmaceuticals, including injectables, also rose by 37% year-on-year.

Huons’ subsidiaries also continued to deliver strong results. Huonsen, the health functional food subsidiary whose revenue was transferred through the spin-off and merger, maintained its upward trend with revenue of 19.4 billion won (40.8%) in the previous quarter. Huons Life Science, which had recorded losses until last year, continued its turnaround with increased revenue and a return to profitability in the third quarter compared to the same period last year.

In addition, Huons recently received Good Manufacturing Practice (GMP) certification for its new injectable line at the second plant. The company plans to operate the second plant within the year to further expand future revenue and profitability.

Huons CEO Song Sooyoung stated, "We were able to sustain growth in the third quarter thanks to increased exports of specialty pharmaceuticals, growth in CMO revenue, and improved performance from subsidiaries. We will focus on maximizing the utilization of the second plant and, with the recent introduction of a new R&D pipeline, we aim to strengthen our mid- to long-term growth drivers."

Huons also announced the issuance of exchangeable bonds based on its own treasury shares, with the purpose of raising funds to repay existing borrowings. Additionally, Huons decided to invest in Huonsen to acquire a health functional food manufacturer with production facilities, as Huonsen’s export volume for health functional foods has recently increased and its spout production line is operating above maximum capacity. As export volumes are expected to continue rising, the company determined that a rapid expansion of production capacity will be necessary.

Meanwhile, on the same day, Huons’ board of directors resolved to implement a third-quarter dividend, deciding on a cash dividend of 570 won per share with a record date set for the 25th of this month. This is the first time Huons is implementing a quarterly dividend. The dividend will be funded by transferring capital surplus to retained earnings, allowing shareholders to benefit from tax exemption. While the interim dividend per share was slightly reduced compared to last year, the additional third-quarter dividend will maintain a 0-30% increase policy compared to the previous year.

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