Business · Companies · 3 hrs ago
Hugel’s third-quarter profit falls 62% as US sales transition weighs
South Korean company Hugel’s operating profit fell 61.8% in the third quarter from a year earlier, to 18.1 billion won.
Revenue fell 7.9% to 97.5 billion won, and both figures were below market forecasts.
A shift in US sales arrangements and inventory buybacks hurt results as Hugel changed its agreement with US distributor Benev to a sales-agent model.
The company bought back stock during the transition, dragging North and South American sales to minus 200 million won.
Sales in Brazil and South Korea grew, with Brazilian toxin sales topping 10 billion won for the first time in a quarter and domestic toxin sales rising 46.3%.
Analysts kept their buy ratings but lowered their price targets, saying the third quarter likely marked the low point.
Analysts expect fourth-quarter revenue to rebound as US sales normalize and higher-priced direct sales begin to count.
Hugel plans to move to fully direct US sales in the second half of next year, but analysts say rising costs and the pace of future growth remain important.
Hugel’s third-quarter operating profit fell 61.8% year on year to 181 billion won.
Revenue declined 7.9% to 975 billion won, with operating profit 35% below market expectations.
The shift in US sales arrangements led Hugel to restrict shipments and buy back distributor inventory.
Analysts cited the inventory adjustment and higher selling and administrative costs as factors in the weak results.
Kiwoom and Shinhan Investment maintained buy ratings while lowering their target prices, and forecast a rebound in fourth-quarter revenue.
- Who
- Hugel, a South Korean company.
- What
- Third-quarter revenue fell 7.9% year on year, and operating profit fell 61.8%.
- When
- The third quarter; the article was published on November 5, 2026.
- Where
- South Korea and Hugel’s overseas markets, including the United States and Brazil.
- Why
- The transition in US sales arrangements involved limiting shipments and buying back inventory, while selling and administrative costs also increased.
This story does not have two clearly opposing sides.
Hugel reported revenue of 975 billion won and operating profit of 181 billion won.
Hugel shares fell to 167,400 won during the session before closing at 184,000 won.
Securities firms maintained buy ratings on Hugel but lowered their target prices after the results.
- Third-quarter revenue
- 975 billion won, down 7.9% year on year
- Third-quarter operating profit
- 181 billion won, down 61.8% year on year
- North and South American revenue
- Negative 2 billion won
- Kiwoom target price
- Lowered from 250,000 won to 230,000 won
- Shinhan Investment target price
- Lowered from 300,000 won to 280,000 won
What people are saying
The third-quarter results, in which the company bought back distribution inventory due to its US strategy change and reached a low point in profit-and-loss indicators, have been announced.
I judge that the low point has passed from the perspective of earnings and share price.
Recovery in domestic toxin and filler demand and continued high growth from cosmetics channel expansion through Olive Young and Sephora.