Huons Reports Q1 Sales of 141.9 Billion Won, Operating Loss of 650 Million Won

On May 13, Huons announced that, on a consolidated basis, it recorded sales of 141.9 billion won and an operating loss of 650 million won in the first quarter of this year. Compared to the same period last year, sales decreased by 2.7%, resulting in a turnaround to an operating loss.

This performance reflects the impact of temporary adjustments due to both internal and external factors. First-quarter sales declined slightly, influenced by several factors: a hold on customs clearance by the U.S. Food and Drug Administration (FDA) for export products destined for the U.S. market, the termination of the continuous glucose monitoring device business, and a decrease in contract manufacturing orders for solid oral formulations.

The operating loss was the result of recognizing the entire 5.3 billion won in warranty expenses this quarter, following proactive recall measures for distributed products in the United States. This outcome reflects the management's decision to solidify quality credibility in the global market, even at the expense of short-term profitability.

Additionally, research and development expenses increased in pursuit of future growth drivers. In the first quarter, R&D costs rose by 18% to 11.7 billion won.

Combined sales of subsidiaries amounted to 33 billion won. Since November of last year, the inclusion of BioLoget's sales in the consolidated financial statements led to an 88.4% year-on-year increase.

Huons plans to implement revenue offsetting strategies and strengthen its business structure starting in the second quarter to overcome this temporary downturn.