Huons Q2 Revenue KRW 117.6B, Profit KRW 7.3B

[Sungjin Kim, Edaily Reporter] While Huons' consolidated performance for the second quarter of this year slowed slightly, earnings rebounded on the back of strong sales in the pharmaceutical division and revenue growth from the new vaccine business.

Huons announced on the 11th that its preliminary financial results for the second quarter of this year reached KRW 117.6 billion in revenue and KRW 7.3 billion in operating profit on a separate financial basis. These figures represent an increase of 6.4% and 485.7%, respectively, compared to the previous quarter.

Huons' preliminary consolidated financial results for the second quarter reached KRW 147 billion in revenue, marking quarter-on-quarter increase of 3.6%, and returned to profit with operating profit of KRW 2.9 billion.

Huons' Q2 consolidated revenue decreased by 5.8% year-on-year, impacted by the termination of the continuous glucose monitoring business and a temporary suspension of exports to the U.S. However, driven by growth in its core domestic pharmaceutical sales and the new vaccine business, revenue increased by 3.6% compared to the previous quarter.

Operating profit returned to the black in the second quarter, recovering from a temporary deficit in the first quarter caused by one-off costs related to a voluntary product recall in the U.S. market. Selling, general, and administrative (SG&A) expenses decreased year-on-year, reflecting the company's continuous cost-management efforts. However, operating profit declined compared to the same period last year due to an increase in the cost of goods sold (COGS). This increase was driven by initial operational costs of newly expanded production lines, alongside expenses and adjustments incurred to upgrade Good Manufacturing Practice (GMP) facilities.

Huons plans to drive earnings recovery in the second half of the year by ramping up its vaccine distribution business and increasing the utilization rate of the injectable line at its second plant. Following the completion of the merger with its subsidiary, HuonsLifeSciences, the company also expects to see improved management efficiency through SG&A expense reductions.

On the same day, Huons' board of directors approved a cash dividend of KRW 200 per share, setting the record date for August 31 and payment date for September 16. The total dividend payout amounts to KRW 2.3 billion. The payout will be processed as a capital reduction dividend utilizing a reduction in capital surplus, allowing shareholders to benefit from tax-free treatment.

CEO of Huons, Song Soo-young stated, "Despite the prolonged global and domestic economic headwinds, we continue to invest aggressively in our future growth engines. Starting with this quarter's financial turnaround, we are dedicated to driving continuous growth through the second half of the year while consistently enhancing shareholder value."