Huons Group’s healthcare subsidiary materials specialist HuM&C is continuing to improve performance and strengthen profitability as its medical container plant in Vietnam goes into full-scale operation.

Established in 2002, HuM&C (CEO Lee Choong-mo) manufactures healthcare subsidiary materials such as medical and cosmetic glass containers including ampoules, as well as cosmetic accessories. Leveraging the establishment of its Vietnamese production plant “HuM&C Vina,” HuM&C has been expanding its business scope and production capacity while continuing research and development (R&D) for future growth, thereby laying the groundwork for further expansion.

Growth driven by Vietnam plant

HuM&C Vina is Huons Group’s first overseas production base and serves as HuM&C’s Vietnamese corporation. Located in Hung Yen Province, Vietnam, the plant has a site area of approximately 15,000㎡ (4,500 pyeong) and an annual production capacity of 60 million vials and 90 million cartridges.

The Vietnam plant began full-scale operation of its production lines in the second quarter of last year, starting its role as an overseas production hub. To ensure stable operation of the plant, HuM&C has made multifaceted efforts such as increasing local hiring and actively conducting employee training.

In addition, to translate the expanded production capacity from the new Vietnam plant into revenue growth, the company is making every effort to secure new clients.

As a result, HuM&C has enhanced local production efficiency and secured price competitiveness. Going forward, the company plans to continuously seek collaboration opportunities with global pharmaceutical and biotechnology companies.

KRW 14.5 billion in consolidated Q1 sales… highest-ever quarterly result

HuM&C posted its highest-ever quarterly results in the first quarter of this year. On a consolidated financial statement basis, first-quarter sales came in at KRW 14.5 billion, with operating profit of KRW 800 million and net profit of KRW 900 million, up 16%, 61%, and 200%, respectively, year-on-year.

In the first quarter, revenue growth was led by the glass business segment. By proactively securing subsidiary materials for which demand is rising in the healthcare sector, the company was able to respond quickly to market trends and achieve growth.

For example, demand for vial containers has increased in line with the recent expansion of the health functional food market. The expansion of the cosmetics and beauty market has also driven higher demand for pre-filled syringes (PFS), which contributed to higher sales. The full-scale operation of the Vietnam production base generated new revenue and contributed to an improved cost ratio and higher net profit.

The recent spread of scalp care trends has boosted demand for haircare products at home and abroad, leading to a recovery in sales of related containers and supporting profitability improvement. In November last year, HuM&C obtained a domestic patent for a functional container that enables both scalp massage and product application. Unlike conventional containers for hair-loss care products that only have an application function, the new container enhances product absorption and improves user convenience.

Under a policy of sharing management achievements such as continuous growth and profit generation with shareholders, HuM&C is continuing initiatives to enhance shareholder value. At the regular general shareholders’ meeting in February, the company implemented its first-ever cash dividend since its founding, paying KRW 200 per share. The dividend was paid entirely tax-free by using funds converted from capital surplus to retained earnings.

On the 11th, following a resolution by the board of directors, the company decided to repurchase treasury shares worth KRW 1 billion. The buyback will take place over six months until 11 December and is expected, according to the company, to contribute to share price stability and enhanced corporate value.

CEO Lee Choong-mo of HuM&C said, “The stabilization of operations at the Vietnam plant, coupled with growth across key business segments and expansion of various product lines, has driven our improved performance,” adding, “We will continue to pursue sustainable growth and share the fruits of that growth with our shareholders, fostering a company that thrives together with them.”

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