Huons Global said Wednesday the company and its subsidiaries recorded 209.6 billion won ($172.8) in sales in the first half of this year, up 18.2 percent from the same period of 2018.
|Huons headquarters in Seongnam, Gyeonggi Province|
However, the company’s operating profit stood at 32.2 billion won, down 7.6 percent over the period.
"Huons Global was able to achieve record-high sales in the first half of this year as the flagship products for its core subsidiaries, Huons and Humedix, continued to show robust growth," a company official said. "The decrease in operating profit was attributed to Huons' outsourcing and recurring research expenses."
By subsidiary, Huons recorded sales of 169.3 billion won and an operating profit of 20.8 billion won, up 9.8 percent and down 12.5 percent, respectively, year on year.
The company's ethical drug and original equipment manufacturer business, which are the two driving forces behind Huons' growth, showed a substantial increase of 16.4 and 8.6 percent, respectively.
Its subsidiaries -- Huons Natural, Biotopia and Huon Nature -- also boosted their earnings with a massive 230 percent increase in sales.
"Operating profit declined slightly due to Huons transferring some of its beauty and healthcare businesses to affiliates in the first quarter of this year, and a 7 percent increase in the company's operating cost," the company said. "However, the company's growth and profitability improved in the second quarter, with significant results in our flagship businesses."
Huons Global expects profitability to recover in the second half of this year, the company added.
Vice Chairman Yoon Sung-tae said, "To cope with the long-term low-growth trends that are affecting the global market, the company is diversifying its business through pharmaceuticals, aesthetics and health supplements, and striving to innovate its profit structure."
Various growth engines that the company has laid the groundwork in the first half-year will serve as a stepping-stone for a leap forward in the second half, Yoon added