HLB Genex Posts 11.7 Billion Won in Q1 Sales, 1.0 Billion Won in Operating Profit...Profitability Trend Continues

HLB Genex, a bio-healthcare materials company, continued its stable profit trend alongside growth in its first-quarter performance this year.

On May 14, HLB Genex announced through a regulatory filing that, on a consolidated basis for the first quarter of this year, it recorded sales of 11.7 billion won and operating profit of 1.0 billion won. Sales increased by 9.3% compared to the same period last year, while operating profit rose by 25.0%.

Profitability indicators also improved. The company explained that, due to a sales strategy focused on high value-added products and cost efficiency measures, gross profit increased by 19.0% compared to the same period last year. As a result, the gross profit margin rose from 39% to 43%, and the operating profit margin also increased from 7% to 9%.

HLB Genex identified the expansion of its specialty enzyme product line and the recovery of its subsidiary’s performance as the main factors driving this strong performance. Core products such as catalase for semiconductors and lactase for food provided a stable sales foundation, while sales of new high value-added products led overall growth.

In particular, 'UDCAse', an enzyme for manufacturing ursodeoxycholic acid that began contributing to sales from the second quarter of last year, made a full-scale contribution to first-quarter results this year. Additionally, sales of Protease NT (CTPase), a high-efficiency collagen tripeptide manufacturing enzyme, more than doubled compared to the same period last year, further driving growth.

The recovery in performance at subsidiary GF Fermentech also had a positive effect. GF Fermentech’s major product sales in the first quarter increased by more than 26% year-on-year, while its core product, phytosphingosine (NPY), recorded growth of over 68%. Vitamin K2 (VK2) also showed double-digit growth, further contributing to improved results.

Doyeon Kim, CEO of HLB Genex, stated, "Following our turnaround to profitability last year, in the first quarter of this year we further strengthened profitability through the stable market establishment of strategic products like UDCAse and the recovery of our subsidiary’s key material performance. Going forward, we will continue to enhance our market competitiveness and shareholder value through the expansion of our high value-added pipeline and efficient management strategies."

This performance demonstrates that HLB Genex is maintaining a stable profit structure and improving profitability based on the expansion of its specialty enzyme products and the recovery of its subsidiary.

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