Hugel(145020)'s second-quarter operating profit fell slightly as it expanded investment to build a U.S. direct sales system. Still, with balanced growth across the botulinum toxin, filler, and cosmetics businesses, first-half results hit an all-time high.
Hugel said on the 6th that, on a consolidation basis, it posted second-quarter sales of 137.9 billion won, operating profit of 56.0 billion won, and net profit of 44.7 billion won. Compared with a year earlier, sales rose 25.1% and net profit increased 17.1%, while operating profit fell 1.1%.
On a cumulative first-half basis, sales were 254.5 billion won, operating profit 103.7 billion won, and net profit 85.3 billion won. Each rose 27.2%, 8.4%, and 23.5% from the same period last year, marking the largest first-half results on record.
The second-quarter decline in operating profit was affected by increased expense due to building the U.S. direct sales system and expanding strategic marketing. However, compared with the previous quarter, operating profit rose 17.6%.
Growth in sales was driven by the core businesses across the board.
Botulinum toxin showed the strongest growth. First-half sales were 149.4 billion won, up 46.6% from a year earlier. In North and South America, sales more than doubled on expanded sales in the United States and Brazil, and the Asia-Pacific and Europe also recorded growth rates in the mid-to-high 20% range.
The filler and skin booster business posted first-half sales of 66.1 billion won. It continued to grow mainly in the European market, and in Korea it maintained sales through a bundling strategy.
The cosmetics and other businesses also grew. First-half sales were 39.0 billion won, up 31.7% from a year earlier, and second-quarter sales were 19.8 billion won, up 32.8%.
Kerry Strom, Hugel global chief executive officer (CEO), said, "We will continue to identify growth opportunities in key overseas markets while expanding our footprint in the U.S. market."
Jang Doo-hyun, Hugel Korea CEO, said, "We will maintain our leadership in the domestic market, continue balanced growth in major overseas markets, and work to diversify our product portfolio."