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[Shin-Min Joon, Edaily Reporter] Huons has achieved record quarterly results for the second quarter.

Huons CI. (Image=Huons)

Huons today announced its preliminary earnings for the second quarter of this year, reporting consolidated sales of 156 billion won , operating profit of 13.1 billion won , and net profit of 11.8 billion won , reflecting year-on-year increase of 4.7%, 40.3%, and 46.5%, respectively.

Quarterly sales surpassed 150 billion won , setting a new record for the highest quarterly revenue. Operating profit also saw a significant increase compared to the same period last year, continuing the trend of improved profitability following the first quarter.

Huons showed balanced growth across all business segments in the second quarter, with improved performances from subsidiaries. Both Huons N, a subsidiary specializing in health functional foods that completed its spin-off and merger in May, and HuonsLifeSciences, specialized in ethical drug (ETC), successfully turned to profit. Additionally, Pangen Biotech, acquired late last year, was included as Huons’ consolidated subsidiary starting this June.

By business segment, the ETC division recorded sales of 69.1 billion won in the second quarter. The division continued its stable growth, led by its metabolic disease drugs and injectable exports, marking a 3.9% increase year-on-year. Notably, injectable exports to North America in the second quarter reached 5.4 billion won , a 51% surge compared to the same period last year.

Sales from the beauty and wellness segment recorded 42.2 billion won , a 13.3% decrease year-on-year. This was due to the transfer of the health functional food business unit’s performance to Huons N, starting last May. Excluding the health functional food business, beauty and wellness sales grew by 7.7% to 37 billion won , driven by strong sales of the continuous glucose monitor system, Dexcom G7.

Huons‘ R&D expenses in Q2 amounted to won 9.8 billion, up 9.8% YOY. Sales from the Contract Manufacturing Organization (CMO) business increased by 7.4% to 20.8 billion won . This growth was driven by a rise in both contract manufacturing for eye drops, following the operation of the new eye drop line at Plant 2, and other pharmaceutical contract services.

In May Huons received Abbreviated New Drug Application (ANDA) approval from the U.S. Food and Drug Administration (FDA) for its products, 1% and 2% multiple-dose vials for lidocaine hydrochloride injection. Huons plans to expand its export portfolio to the U.S. by pursuing new registration for its dental anesthetics.

Huons aims to achieve both sales growth and improved profitability in the second half of the year, with the new injectable product line at Plant 2 scheduled for operation in the third quarter. Additionally its health functional food subsidiary Huons N also saw a 76.7% growth in second quarter sales recording 18.7 billion won .

Huons CEO Song Soo young said, “This record high quarterly performance was driven by the stable growth of its existing businesses and the strong performance of its subsidiaries. With the successful spin off and merger of health functional food business unit and the full scale operation of a new production facility in the second half of the year, we expect to secure both sustained top-line growth and profitability.”

On the same day the board of directors approved a cash dividend of 150 won per share and set the record date for the dividend as August 21, in accordance with the revised Financial Investment Services and Capital Markets Act. The record date, which was previously June 30 was changed to the date after the dividend was announced.

The per share dividend for this interim period has slightly decreased compared to the previous year. Although the dividend per share was determined in consideration of the rapidly changing business environment the company plans to maintain its existing policy of increasing the total annual dividend including the year end dividend by 0% to 30% compared to the previous year.

The capital reserve reduction and reduced dividends approved at this year’s AGM do not apply to the interim dividend but will take effect from the year-end dividend. If the year end payout increases, shareholders are expected to benefit from greater tax exempt dividends.