Huons Global announced on the 15th that its consolidated operating profit for the first quarter of this year was 25.6 billion won, down 1.5% from the same period last year. Sales also decreased by 1.4% compared to the same period last year, amounting to 199.1 billion won. However, net income recorded 26.1 billion won, an increase of 13.1% from the same period last year.
The company explained that although it implemented management efficiency to reduce selling and administrative expenses for profitability improvement, research and development (R&D) expenses increased. In fact, Huons Group's R&D expenses for the first quarter were 17.8 billion won, up 34% compared to the same period last year (13.3 billion won). This increase in expenses reflected the clinical costs of Huons and Huons Lab's major new drug candidates (pipeline).
However, the company noted that the core business segments of major affiliates, such as Huons' prescription drug growth and Humedix's increase in aesthetics business exports, improved.
By affiliate, Huons reported a consolidated operating profit of 12.8 billion won for the first quarter, an increase of 20.1% compared to the same period last year, while sales decreased by 1.3% to 145.8 billion won. The prescription drug business saw growth centered on chronic disease medications, and exports of pharmaceuticals, including injectable and ophthalmic products to the United States, increased. In addition to the existing five injectable products that received approval from the U.S. Food and Drug Administration (FDA), two anesthetics received additional approvals on the 5th.
Huons also significantly improved its profitability. It recorded an operating profit margin of 8.8% on a consolidated basis and 9.8% on a separate basis, achieving the highest operating profit margin in the last five quarters. After completing the partitioning merger process on the 2nd, Huons' health supplement subsidiary, Huons N, also turned to profit, recording 11.7 billion won in sales and 200 million won in operating profit for the first quarter.
Humedix, an aesthetics subsidiary, reported an individual basis operating profit that increased by 7.3% compared to the same period last year, while sales decreased by 2.5% to 40.1 billion won. The growth in performance was driven by the export of fillers, cosmetics, and raw pharmaceutical products. In particular, exports of hyaluronic acid (HA) fillers continued to grow, following a strong trend last year, and the company received product approvals for three types of fillers in Thailand earlier this year. The strategy is to continue revenue growth focused on filler exports.
Huons Bio Pharma, a subsidiary specializing in botulinum toxin, recorded sales of 7.2 billion won and an operating profit of 1.4 billion won for the first quarter. Although exports of toxin products to countries such as Thailand and Iraq increased, domestic sales decreased, resulting in lower sales and operating profit compared to the same period last year. Huons Meditech recorded sales of 13.3 billion won and an operating loss of 200 million won, turning to a loss due to a decrease in medical device exports. Huons Lab continues to develop human-derived hyaluronidase, currently conducting Phase 1 clinical trials, with plans to apply for product approval after the completion of clinical trials in the second half of this year.
Song Soo-young, CEO of Huons Global, said, "Despite ongoing external uncertainties due to domestic and international economic downturns, the Huons Group plans to secure visible results and medium- to long-term growth engines through active export expansion and continuous research and development investment," adding, "We will strengthen compliance and lawful management to become a global corporation that prioritizes corporate ethics and continues to grow."