Huons reported first-quarter consolidated revenue of 141.9 billion won ($94.9 million) and an operating loss of 649 million won, compared with an operating profit a year earlier, as revenue fell 2.7 percent year-on-year.
The company said earnings were affected by both internal and external factors.
Huons said first-quarter performance was impacted by the FDA’s detention of products exported to the U.S., the discontinuation of its continuous glucose monitoring (CGM) business and lower contract manufacturing orders for solid oral dosage forms.
Operating profit fell into the red mainly due to a one-time warranty expense of 1.07 billion won related to a voluntary recall of products in the U.S. market. The company said it recognized the full expense during the quarter.
R&D spending rose to 11.7 billion won in the first quarter, up 18 percent from a year earlier.
Huons’ subsidiaries posted combined revenue of 33 billion won. The company said revenue growth accelerated following the addition of BioRosette in November 2025, with subsidiary revenue rising 88.4 percent year-on-year.
Huons said it expects earnings to improve from the second quarter through higher utilization of injectable production lines and operational efficiency measures.
The company added that a small-scale merger with a subsidiary expanded production capacity for solid oral dosage forms and is expected to help reduce selling, general and administrative expenses.
Huons’ board approved a quarterly dividend of 200 won per share, with the record date set for May 27.
A Huons official said profitability weakened in the first quarter due to recall-related costs and external factors, but added that the company expects improvement from the second quarter driven by its vaccine business, injectable production lines and merger synergies.
Lee Han-soo
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