Hugel said Thursday that it recorded sales of 34.9 billion won ($30.6 million) in the third quarter of this year, an 18.5 percent drop from the previous quarter.
The botulinum toxin (BTX) manufacturer also registered 5.1 billion won in operating profit in the same period, losing more than 69.3 percent from the previous quarter. However, the company managed to increase its net profit to 23.8 billion won, a drastic 49.5 percent increase from the second quarter.
“Hugel’s botulinum toxin product, Botulax, showed negative growth in Asia due to sales channel restructuring,” the company said. “However, Botulax sale in several regions, including Latin America and Russia, showed high growth of 46 percent year-on-year, and Chaeum (Dermalax), Hugel’s HA filler product, grew phenomenally in Europe and Korea by 637 and 100 percent, respectively.”
Hugel recorded high net profit thanks to an increase in equity value in Olix, it added.
The company stressed that it expects continued growth as it recently became the first Korean BTX manufacturer to complete phase 3 clinical trial in Taiwan. As Hugel is also preparing to submit BLA to China, the completion of phase 3 clinical trial in Taiwan will contribute to the expansion of international growth and serve as a bridgehead for China
Hugel also mentioned that its cosmetics line-up has also seen strong growth this quarter.
To stabilize share price and enhance shareholder value, Hugel decided to initiate share buyback worth 30 billion won. The company said it has decided on share buyback as part of its shareholder return policy, which in turn, will boost both the shareholder value and its corporate value.
“In the fourth quarter, our major products, Botulax and Chaeum, are expected to hit peak season, expand into Taiwan, and show strong growth in major exporting countries, including Latin America and Russia,” Hugel’s CEO Sohn Ji-hoon said. “Also, our cosmetic business will continue to show phenomenal growth.”
Hugel will accelerate the management’s transformation into a more shareholder-friendly one to enhance shareholder value, he added.