Hecto Innovation Reports Operating Profit of 11.2 Billion KRW in Q2, Up 18% Year-on-Year

Hecto Innovation announced on the 8th that it recorded consolidated sales of 77.8 billion KRW, operating profit of 11.2 billion KRW, and net profit of 10.2 billion KRW for the second quarter. Sales grew 8.4% year-on-year, marking the highest quarterly sales ever. Operating profit increased by 18.0%, and net profit rose by 27.4%.

Hecto Innovation has been setting record-high sales for 12 consecutive quarters. The IT-based information services sector achieved the highest performance since its founding, with stable sales from existing businesses, increased advertising revenue from the new B2C app service, and a 12.8% growth in the healthcare business division.

In the healthcare business division, last month, Hecto Innovation signed a supply contract worth at least 155 billion KRW over five years with a pharmaceutical specialist company under China National Pharmaceutical Group Corporation (Sinopharm Group), China’s largest state-owned pharmaceutical enterprise, for the premium probiotic product line ‘Deusimone,’ signaling a positive outlook for future business growth.

Operating profit increased by 18.0% year-on-year and 14.1% quarter-on-quarter, driven by increased standalone sales, cost efficiency, and improved profitability in the fintech business division. Adjusted EBITDA, excluding depreciation and stock compensation expenses, was 16.2 billion KRW, up 15.7% year-on-year, strengthening stable operating cash flow.

Hyuncheol Lee, CEO of Hecto Innovation, said, “The second quarter is a meaningful period with both financial results showing significant growth in operating profit on both consolidated and standalone bases, and business achievements laying an important foundation for sustained growth. We will pursue continuous growth centered on B2C platforms and global markets.”

Hecto Innovation started in IT information services and is focusing on nurturing B2C platform services such as the app-tech platform ‘Balloso-deuk.’ Through its subsidiaries, fintech company ‘Hecto Financial’ and healthcare service company ‘Hecto Healthcare,’ it operates businesses based on IT technology in finance, data, and healthcare sectors.