Huons Global Sees 64% Drop in Q1 Operating Profit...Huons Recall Costs Reflected

Consolidated Sales of 197 Billion Won, Operating Profit of 9.2 Billion Won

Impact of Huons U.S. Recall Costs and Business Restructuring... HuM&C Achieves Record-High Results

On May 15, Huons Global announced that its consolidated sales for the first quarter of this year reached 197 billion won, with an operating profit of 9.2 billion won. Compared to the same period last year, sales decreased by 1.1%, and operating profit dropped by 64.1%.

Huons Global company logo image. Huons Global

The company explained that the slowdown in growth of its major business subsidiaries and the recognition of one-off costs impacted its financial results.

Major subsidiary Huons posted consolidated sales of 141.9 billion won and an operating loss of 650 million won, turning to a deficit. Sales declined due to the temporary suspension of exports to the United States and the termination of its continuous glucose monitoring device business. Additionally, a provision of 5.3 billion won for sales warranty expenses related to a proactive recall of products distributed in the U.S. was reflected. Research and development expenses increased by 18% year-on-year to 11.7 billion won.

Huons Meditech posted standalone sales of 40.5 billion won and operating profit of 8.9 billion won. While sales saw a slight increase, operating profit declined due to higher selling and administrative expenses.

HuM&C achieved its highest-ever quarterly results with consolidated sales of 14.5 billion won and operating profit of 800 million won. Growth in the glass business division and product diversification drove this performance.

Huons Biopharma reported sales of 5.1 billion won and an operating loss of 800 million won. Intensified competition in the domestic botulinum toxin market and the recognition of allowance for doubtful accounts impacted the results.

Huons Global is also pursuing a business restructuring through the absorption-type merger of its subsidiary, Huons Life Science. The company explained that the goal is to reduce selling and administrative expenses and improve operational efficiency.

Song Sooyoung, CEO of Huons Global, stated, "The first quarter of this year was a period when we pursued essential investments and structural improvements for sustainable growth. Based on enhanced business competitiveness, we will strive to achieve tangible improvements in results, secure future growth drivers, and maximize shareholder returns."

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