Huons(243070) group healthcare auxiliary materials specialized corporations HuM&C(263920) has been improving its performance by expanding production capacity as its Vietnam manufacturing plant goes into full operation.
Founded in 2002, HuM&C is a corporations that produces medical and beauty glass containers such as ampoules and vials (bottles), and healthcare auxiliary materials such as cosmetic accessories. The company established the Vietnam subsidiary HuM&C Vina and secured an overseas production base, strengthening production capabilities and research and development (R&D) competitiveness.
HuM&C Vina is Huons Group's first overseas production base. The plant in Hung Yen Province, Vietnam, covers about 4,500 pyeong and can produce 60 million vials and 90 million cartridges annually. Since the full-scale operation of the production line in the second quarter of last year, the company has stabilized operations by hiring and training local staff, and is accelerating the acquisition of new clients by leveraging increased production capacity. Based on this, it plans to enhance production efficiency and price competitiveness and expand cooperation with global pharmaceutical and biotech corporations.
These efforts translated into results. HuM&C posted consolidated sales of 14.5 billion won and operating profit of 800 million won in the first quarter of this year. Compared with a year earlier, sales rose 16% and operating profit increased 46%, marking the highest quarterly performance.
Growth was led by the glass division. Increased demand for vial containers due to the expansion of the health functional food market and rising demand for prefilled syringes (PFS) as the cosmetics and beauty market grows drove sales higher. In addition, with the Vietnam plant going into full operation, new sales were generated and the cost ratio improved, boosting profitability.
As the scalp care market has recently grown, sales of hair care containers also showed a recovery trend. In November last year, HuM&C obtained a domestic patent for a functional container that can perform scalp massage and product application at the same time. It features improved product absorption and ease of use compared with existing hair loss care containers.
Chief Executive Lee Chung-mo of HuM&C said, "We achieved performance improvement as a result of the successful settling of the Vietnam plant and continued expansion of business items," and added, "We will continue to proactively anticipate and respond to market changes to further strengthen global competitiveness."