Huons, operating loss of 650 million won in the first quarter of 2026… Affected by customs clearance issues in the U.S. market

Huons recorded an operating loss of 650 million Korean won in the first quarter of 2026, turning to a loss. This was due to a decrease in sales, along with one-time expenses reflected during the response process in the U.S. market, leading to deteriorated profitability.

Huons announced on the 12th that, based on consolidated figures, the sales for the first quarter of this year were 141.9 billion Korean won, a 2.7% decrease compared to the same period last year. The company explained that this poor performance is largely a temporary adjustment caused by internal and external variables. This means that rather than a simple slowdown in sales, it is the result of a combination of export issues, partial business restructuring, and changes in entrusted order volumes.

The direct background for the decrease in sales is attributed to measures delaying the clearance of exported products to the U.S. by the U.S. Food and Drug Administration (FDA). For pharmaceutical and medical device companies, market access in the U.S. has a significant impact on performance; if clearance is delayed, shipments are postponed, and sales recognition may also be delayed. Additionally, the termination of the continuous glucose monitoring device business and a reduction in entrusted order volumes for oral solid formulations (such as tablets and capsules) are also factors contributing to the decline in performance.

Turning operating profit into a loss, expense burdens also played a major role. Huons stated that it took a preventive recall measure for products distributed in the U.S., during which 5.3 billion Korean won in sales warranty costs were reflected in operating profit and loss. Sales warranty costs are expenses pre-provisioned to handle returns, exchanges, or quality issues. On the other hand, the company maintained an investment tone aimed at future growth drivers. R&D expenses for the first quarter were 11.7 billion Korean won, an 18% increase compared to the same period last year.

The company stated that even in the face of poor performance, it will continue to implement shareholder return policies. On the same day, Huons confirmed a quarterly cash dividend of 200 Korean won per common share at the board meeting, with the dividend record date set for May 27. The market believes that the speed of resolving related issues in the U.S. and whether new sources of income can fill the gaps caused by reduced entrusted order volumes and business adjustments will be key variables for the recovery of performance.