[Asia Economy Reporter Lee Gwanju] Huem&c announced on the 17th that its consolidated sales for the second quarter of this year reached 13.6 billion KRW, a 217% increase compared to the same period last year. Operating profit rose 699% to 800 million KRW, achieving a turnaround to profitability.
Huem&c attributed the improved performance to the diversification of its business portfolio through the acquisition of Hubena in April.
Sales from the cosmetic materials business grew 8% year-on-year to 4.1 billion KRW. The strong performance was driven by diversifying the product portfolio and expanding overseas exports to overcome the decline in domestic cosmetic demand.
Hubena recorded sales of 7.5 billion KRW and operating profit of 1 billion KRW in the second quarter. It was included as a consolidated subsidiary of Huem&c in the second quarter and reflected in the consolidated results. Following the merger, it will be reflected in Huem&c’s standalone results from the third quarter.
The subsidiary Blossom Story achieved sales of 2 billion KRW in the second quarter, supported by currently airing shows such as Model Detective 2.
Huem&c plans to fully launch its total healthcare materials business in the second half of the year by adding Hubena’s pharmaceutical materials business to its existing cosmetic materials business.
Kim Juncheol, CEO of Huem&c, said, “We acquired Hubena in the second quarter and succeeded in turning a profit through the cosmetic materials business and portfolio diversification. We expect the cosmetic industry to regain momentum in the second half along with the full effects of the merger.”
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