Huons Global, 3Q Operating Profit 31.9 Billion KRW... 75% Increase YoY

Huons Global, the holding company of the Huons Group, announced on the 14th that its consolidated operating profit for the third quarter of this year reached 31.9 billion KRW, a 75% increase compared to the same period last year. During the same period, sales increased by 13.8% to 190.6 billion KRW.

Aerial view of Huons' second factory. [Image provided by Huons]

Listed subsidiaries Huons, Humedics, and HuM&C drove the group's steady performance with balanced growth across major business sectors.

Huons recorded consolidated sales of 138.2 billion KRW and an operating profit of 15 billion KRW, representing increases of 12% and 638%, respectively, compared to the previous year. Sales in the ethical pharmaceutical (ETC) sector reached 66.5 billion KRW, growing 26% year-on-year. Notably, sales of injectable drugs exported to the U.S. market led the growth trend, achieving 6.1 billion KRW, a 97% increase from the previous year.

The beauty and well-being division also showed an upward trend with sales of 45 billion KRW. In the health functional food category, the individually recognized raw material product 'Jeonlipseon Sagunja' recorded its highest quarterly sales, contributing to growth. The contract manufacturing organization (CMO) business also grew by 14.7% year-on-year, with sales reaching 17.1 billion KRW. Huons is currently conducting test production for product approval ahead of the full operation of the second plant's eye drop line. Production capacity will increase 1.5 times from the existing 350 million units to approximately 520 million units.

Huons plans to target the eye drop market to meet the growing demand for dry eye treatments. Additionally, by expanding the injectable drug line in the second plant, the company aims to increase the local market share of the 2% lidocaine anesthetic, an ANDA-approved drug by the U.S. Food and Drug Administration (FDA), boost exports of 1% lidocaine to Canada, and accelerate the discovery of new business opportunities.

Humedics, the aesthetic subsidiary, recorded individual sales of 39.7 billion KRW and operating profit of 11.4 billion KRW in the third quarter, representing growth of 24% and 45%, respectively, compared to the previous year. Humedics explained that growth in the filler-centered aesthetic, CMO, and cosmetics businesses drove the performance. Following the reopening of economic activities, demand for aesthetics from domestic and overseas medical tourists increased, boosting sales. Growth in the Chinese market and a surge in filler demand in South America, including Brazil, also contributed.

In the CMO business, orders for new vial injectables and ethical pharmaceuticals increased. Humedics plans to continue its strong performance by expanding export countries with filler product approval in Russia in the fourth quarter, alongside increased orders for ethical pharmaceuticals and eye drop CMO. Furthermore, the company is strengthening its growth foundation through the domestic first registration of heparin sodium raw material drug (DMF) and clinical trials of PN mesofiller in Korea, which are new growth engines.

HuM&C, a healthcare material specialist company, reported individual sales of 12.6 billion KRW in the third quarter, a 22% increase compared to the same period last year. Operating profit also surged by 327% to 1.5 billion KRW during the same period.

Sales in the glass division reached 9.5 billion KRW, a 26% increase year-on-year, driven by increased demand for basic pharmaceutical ampoules and vials from domestic clients. The cosmetics division recorded sales of 3 billion KRW, a 12% increase compared to the previous year. The company explained that continuous overseas exhibition marketing activities after COVID-19 contributed to the increase in overseas sales. HuM&C expects further profit improvement with the strong performance of the cosmetics division and the completion of the glass production base in Vietnam.

Huons Biopharma posted third-quarter sales of 9.2 billion KRW and operating profit of 2.5 billion KRW, growing 37% and 64%, respectively, year-on-year. Huons Biopharma's botulinum toxin product 'Hutox' obtained product approval in Thailand last July. Medical device subsidiary Huons Meditech recorded sales of 13.6 billion KRW and operating profit of 600 million KRW.

Song Soo-young, CEO of Huons Global, stated, "Huons Group is focusing on both growth and profitability improvement based on innovation. Building on the export expansion strategy that underpinned the strong third-quarter performance, we will strive to continuously supply global-quality pharmaceuticals worldwide."