K-beauty Global Power Drives Cosmax to Record Quarterly Sales and Operating Profit

Buoyed by the global popularity of K-beauty, Cosmax posted record quarterly sales and operating profit in the second quarter of this year.

According to a filing on the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) on the 11th, consolidated sales in the second quarter rose 27% from a year earlier to 794.9 billion won, while operating profit increased 21% to 73.7 billion won, the highest quarterly figure on record.

For the first half of the year, consolidated sales reached 1.4769 trillion won and operating profit came to 126.8 billion won, up 22% and 13%, respectively, from a year earlier.

The Korean unit led overall growth. Sales at the domestic unit rose 23% year on year to 518.4 billion won, surpassing 500 billion won for the first time on a quarterly basis. Operating profit for the same period increased 13% to 56.4 billion won.

Driven by the strong global popularity of K-beauty, indie brand clients are expanding beyond the United States into markets around the world. As cooperation with global and European clients has also widened, direct export sales increased as well.

In overseas operations, the China unit continued its solid growth, with sales rising 33% year on year to 197.4 billion won. At the Shanghai unit, local color cosmetics clients posted strong growth, while base makeup products such as cushions and foundations, along with blush and lip products, drove the gains. The Guangzhou unit also recorded balanced growth across online and export channels, supported by efforts to diversify its channels.

The U.S. unit posted sales of 53.8 billion won, up 79% from a year earlier, and turned a quarterly profit for the first time since its establishment.

The Southeast Asia units also delivered strong results. In Indonesia, sales rose 38% year on year to 28.9 billion won, helped by a rebound in performance among existing MT (Modern Trade) clients such as convenience stores and supermarkets, as well as growth from new GT (General Trade) clients such as small neighborhood shops. Sales in export channels to neighboring countries, including Malaysia, Singapore and India, are also expanding. The Thailand unit posted sales of 24.9 billion won, up 8% from a year earlier, as repeat orders for hit products from major clients increased.

A Cosmax official said, "In the second half, we will further solidify our position as the world's No. 1 cosmetics ODM based on the continued strength of skincare, expanding global demand for K-beauty, and the successful establishment of new clients."

Kim So-hyung, compact@sportschosun.com

This article has been translated by GripLabs Mingo AI.