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Huons profit jumps 26 percent in first quarter

Published: 02 May. 2025, 18:08 Updated: 04 May. 2025, 17:57

SHIN MIN-HEE
[email protected]

Logo for biopharmaceutical firm Huons [HUONS]

Biopharmaceutical firm Huons announced Friday that its profit rose in the first quarter after aggressive cost cuts despite a drop in sales.

Earnings before interest and taxes climbed 20.1 percent to 12.8 billion won ($9.1 million) from the year-earlier period, the company said in a press release, while net profit climbed 26.4 percent to 12.4 billion won. Revenue fell 1.3 percent to 145.8 billion won.

The operating profit reported was the company's highest since the first quarter of 2024. Huons also posted a consolidated operating margin of 8.8 percent and stand-alone operating margin of 9.8 percent, its highest in five quarters as well.

The company attributed the profitability of the first quarter to the performances of its subsidiaries and company-wide cost control efforts, such as Huons Foodience (now Huons N), which saw a profit, and HuonsLifeSciences, which narrowed its deficit.

Huons also said it managed and reduced expenses on advertising and commissions as well as increasing investment in research and development (R&D).

“Ethical drugs” and diabetes medical devices were major contributors to sales growth. Medical devices sales increased 34.2 percent from the previous year.

“Huons will further strengthen its unique business areas to increase profitability based on its strong fundamentals,” Huons CEO Song Soo-young said in the press release. “The company plans to expand exports and continue to increase R&D investment for securing visible outcomes and mid- to long-term growth engines.”

BY SHIN MIN-HEE [[email protected]]