Huons Global, the holding company of Huons Group (CEO Yoon Seong-tae), announced on the 22nd that it achieved sales of 575.6 billion won, a 10% increase compared to the previous year, in 2021 based on the consolidated financial statements, breaking the record for the highest sales ever. However, operating profit recorded KRW 75 billion and net profit of KRW 30.8 billion, down 16% and 66%, respectively, from the previous year.
Huons Global said, “In a situation where the economy continues to stagnate due to the prolonged Corona 19, the growth rate has not slowed since the annual sales exceeded 500 billion won for the first time in 2020 and recorded double-digit growth.”
Group subsidiaries Huons and Humedix broke record sales records last year, recording 436.9 billion won and 111 billion won, respectively, in their respective main businesses, pharmaceuticals, health functional foods, and esthetics. Other subsidiaries such as Huons Medicare (currently Huons Meditech) and Hubena also contributed to the group’s growth by generating stable profits. Huons Biopharma, which was spun off from Huons Global in April last year, achieved sales of 15.2 billion won in three quarters, and Huons Blossom, which was incorporated as a group company last year, recorded sales of 16 billion won.
The group said, “Huons led the growth of the health functional food business with ‘Elruby Menoract’, a female menopausal lactobacillus, and the newly established ophthalmic division and injectable drugs led the growth of the pharmaceutical business. ‘Riztox’, a botulinum toxin, has been a driving force in the growth of the aesthetic business.”
Operating profit and net profit decreased compared to the previous year. Operating profit was 75 billion won and net profit 30.8 billion won, down 16% and 66%, respectively, from the previous year. The company analyzed this result because the investment cost spent to secure future momentum was reflected.
△Increase in initial cost for brand establishment of dry food business (advertisement cost, commission paid, etc.) △Depreciation expenses due to investment in factory facilities such as new eye drop line △Increase in R&D cost of pharmaceutical pipelines were cited as factors for the decrease.
According to the group, it is confirmed that the decrease in net profit reflects a loss on equity method valuation of 3.2 billion won without cash outflow and a loss of 27.4 billion won on goodwill of subsidiaries and sub-subsidiaries.
An official from Huons Global said, “We are focusing on building a foundation for future growth from a mid- to long-term perspective.” “In order to strengthen our identity as a pharmaceutical-based health care company and increase our competitiveness, the group’s integrated R&D center, eye drops (Huons), and botulinum are located in Gwacheon, Gyeonggi-do. We plan to build a new factory specializing in toxin (Huons Biopharma) to expand our production capacity in highly profitable and competitive businesses.”
He said, “The internal and external economic recovery has been delayed due to the prolonged Corona 19, but we were able to continue sales growth by showing good results in business diversification. “He said.
Meanwhile, Huons Group recently launched Huons Foods (health functional food) and Huons Meditech (medical device) by promoting the merger of subsidiaries and sub-subsidiaries to advance the business structure in the health functional food and medical device sectors.
