Huons said Friday that it improved its profitability in the first quarter of 2025 by strengthening earnings across its subsidiaries and tightening company-wide cost controls.

The company reported consolidated revenue of 145.8 billion won ($102.7 million), operating profit of 12.8 billion won, and net profit of 12.4 billion won for the first quarter. Compared to the same period last year, revenue declined by 1.3 percent, while operating profit and net profit rose by 20.1 percent and 26.4 percent, respectively.

Huons achieved an operating margin of 8.8 percent on a consolidated basis and 9.8 percent on a separate basis, marking the highest operating profit and margin in the past five consecutive quarters.

The first-quarter profitability gains were attributed to improved performances at Huons’ subsidiaries and effective corporate-wide cost management.

Huons Foodience, now rebranded as Huons N and responsible for the company’s health supplement business, returned to profitability, and Huons Life Science, which manufactures and sells prescription drugs, narrowed its losses and contributed to overall profit growth.

Cost management also played a key role. Advertising and commission expenses were reduced, lowering the selling, general, and administrative expense ratio from 43.2 percent to 39.5 percent. At the same time, Huons continued to increase its investment in research and development to drive future growth.

Prescription pharmaceuticals and diabetes medical devices led sales growth. Chronic disease treatments, including cardiovascular and metabolic drugs, posted stable growth in Korea, while an influenza outbreak early in the year spurred higher antibiotic prescriptions.

U.S. injectable drug exports reached 4.2 billion won, up 19 percent. Exports of ophthalmic solutions also expanded to countries including Saudi Arabia and Jordan.

Contract manufacturing organization (CMO) revenue totaled 19.1 billion won, a slight year-on-year decline of 2.1 percent. However, first-quarter ophthalmic sales, including CMO and exports, increased 25 percent from the previous quarter to 12.4 billion won. Capacity utilization at Huons’ second ophthalmic manufacturing facility, which began operating last year, also climbed to 77 percent.

The beauty and wellness division reported revenue of 43.7 billion won, down 10.4 percent from the same period last year. The decline was largely due to temporary sales impacts from restructuring the health supplement division into a wholly-owned subsidiary.

Sales of the Dexcom G7 continuous glucose monitor also rose sharply, driving a 34.2 percent increase in medical device revenue.

Looking ahead, Huons plans to secure U.S. FDA Abbreviated New Drug Application (ANDA) approval this year for its 20ml multi-dose lidocaine anesthetic and register a new dental local anesthetic.

The company also anticipates launching new injectable products from its expanded production line in the second half, which should further boost sales and improve margins through better cost efficiency.

“Following the spin-off and merger of our health supplement business, Huons will strengthen its core business areas and focus on profitability backed by solid fundamentals,” Huons CEO Song Soo-young said. “We will actively expand exports using our new injectable and ophthalmic production facilities while steadily investing in research and development to achieve both visible results and long-term growth drivers.”