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[2018.10.25] Hugel, Inc. achieves 3Q revenue of KRW 34.9bn, operating profit of KRW 5.1bn
2019-12-04

<Tentative Earnings Release>

Hugel, Inc. achieves 3Q revenue of KRW 34.9bn, operating profit of KRW 5.1bn

Botulax may receive marketing approval in Taiwan by year-end at the earliest 

Strong growth from Wellage expected

Share buyback worth 30bn KRW in order stabilize share price and enhance shareholder value


 

  <Financial Summary 3Q 2018>                                                               (Unit : KRW million)

 

Items

3Q 2018

2Q 2018

QoQ

3Q 2017

YoY

Revenue

34,936

42,864

-18.5%

41,570

-16.0%

Operating profit

5,132

16,719

-69.3%

23,716

-78.4%

Net profit

23,871

15,972

49.5%

19,269

23.9%

 


 





Hugel, Inc. (145020.KQ) tentatively released 3Q 2018 consolidated financial performance on October 25th, stating that the company has achieved a revenue of KRW 34,936mn, an operating profit of KRW 5,132mn, and a net profit of KRW 23,871mn.


The company’s 3Q revenue and operating profit fell by 16% YoY and 78.4% YoY, respectively. Hugel’s botulinum toxin product, Botulax, showed negative growth in Asia due to sales channel restructuring; however, Botulax sale in several regions, including Latin America and Russia, showed high growth of 46% YoY. Hugel’s HA filler product, The Chaeum (Dermalax), grew phenomenally in Europe and in Korea by 637% and 100% YoY, respectively. Hugel recorded high net profit due to increase in equity value in Olix, which was listed on KOSDAQ market.


On a more positive note, Hugel recently became the first Korean botulinum toxin 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 expansion of international growth and serve as a bridgehead to Greater China region.


Hugel’s cosmetic brand, Wellage, saw strong growth, thanks to its hit item, ‘Wellage Real HA One-Day Kit’, performing well in duty-free shops. Furthermore, even stronger performance is expected from Wellage in 4Q 2018, as the company prepares to launch new, complementary products, including ‘Real Hyaluronic Capsule Serum’ and ‘Intensive Cream’.

The company continues to show effort to expand its product portfolio: 1) phase 1 clinical trial for BMT-101, RNAi technology-based anti-scarring therapeutics, was recently completed and phase 2 clinical trial is expected to begin shortly; 2) new, smoother HA filler product, ‘The Chaeum Style’, was recently launched.

Hugel decided to initiate share buyback worth KRW 30bn in order to stabilize share price and enhance shareholder value. Hugel said it has decided on share buyback, part of its shareholder return policy, in order to boost both the shareholder value and its corporate value.


Hugel’s CEO, Jihoon Sohn, stated, “In 4Q 2018, our major products, Botulax and The Chaeum, are expected to hit peak season, expand into new market of Taiwan, and show strong growth in major exporting countries, including Latin America and Russia. Additionally, our cosmetic business will continue to show phenomenal growth.” Mr. Sohn also added, “We will accelerate the management’s transformation into a more shareholder-friendly one in order to enhance shareholder value.”



 

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