Record-High Sales Driven by Prescription Drugs and Export Growth
Operating Profit Declines Amid Rising R&D Investment
Dividend Policy Maintained Despite Uncertain Business Environment
Sales based on consolidated financial statements increased year-on-year, marking the highest quarterly performance in the company's history. However, operating profit declined, which the company attributed to intensified competition in the domestic botulinum toxin market and the resulting slowdown in the performance of aesthetic subsidiaries such as HuMedix and Huons BioPharma.
Increased research and development (R&D) expenses aimed at securing future growth drivers also contributed to the decrease in operating profit. Huons Group's R&D spending in the first half of this year reached KRW 34 billion, up about 4% from KRW 32.7 billion in the first half of last year. The ratio of R&D expenses to sales rose from 7.9% to 8.2%.
For the first half of the year, consolidated financial statements showed sales of KRW 411.8 billion and operating profit of KRW 50.8 billion. Both quarterly and half-yearly sales reached all-time highs.
Huons (CEO Song Sooyoung) reported consolidated second-quarter sales of KRW 156 billion, operating profit of KRW 13.1 billion, and net profit of KRW 11.8 billion, representing increases of +4.7%, +40.3%, and +46.5%, respectively, compared to the same period last year. Second-quarter sales surpassed the KRW 150 billion mark, setting a new quarterly record and continuing a trend of significant profitability improvement.
Prescription drug sales reached KRW 69.2 billion, with strong performance centered on metabolic disease medications and injectable exports. The beauty and wellness business recorded KRW 42.2 billion, a decrease attributable to the transfer of sales to the subsidiary HuonsN following the spin-off and merger of the health functional food division in May. Excluding the health functional food division, beauty and wellness sales totaled KRW 37 billion, a year-on-year increase of +7.7%. In particular, the continuous glucose monitor 'Dexcom G7' achieved its highest-ever quarterly sales, standing out for its growth. The contract manufacturing (CMO) business generated KRW 20.7 billion in sales, driven by increased utilization of the second plant's ophthalmic solution production line.
Meanwhile, on August 6, Huons Global's board of directors resolved to pay a cash dividend of KRW 130 per share, with the record date set for the 21st of this month. The company explained that, while the per-share dividend was determined in consideration of the rapidly changing business environment, it will maintain its existing policy of increasing the total annual dividend, including the year-end dividend, by 0-30% compared to the previous year.
The reduction of capital reserves and the related reduction dividend, which were approved at this year's regular general shareholders' meeting, cannot be applied to this interim dividend and will only be applicable starting with the year-end dividend. Therefore, if the year-end dividend is increased, shareholders are expected to benefit further from the tax exemption on the reduction dividend.
Song Sooyoung, CEO of Huons Global, stated, "Despite ongoing external uncertainties and the domestic and global economic downturn, Huons Group continues to actively expand exports and invest steadily in research and development. We are fully committed to strengthening the foundation for sustainable growth while simultaneously securing both tangible results and long-term growth drivers."
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