Akyeong Industrial Operating Profit Decreases by 45% Due to COVID-19 Impact

[Asia Economy Reporter Yujin Cho] Aekyung Industrial Co., Ltd. (CEO Yoon-kyu Lee) announced on the 7th that its consolidated operating profit for the first quarter of this year was 12.6 billion KRW, a 45.3% decrease compared to the same period last year. During the same period, sales amounted to 160.4 billion KRW and net profit was 9.1 billion KRW, decreasing by 10.3% and 50.3%, respectively.

The company explained that while the cosmetics business performance declined amid difficult domestic and international conditions due to the novel coronavirus disease (COVID-19), the household goods business improved its performance through proactive brand investment and agile market response.

The household goods business recorded sales of 95.6 billion KRW and operating profit of 5.6 billion KRW, growing by 7.3% and 17% respectively compared to the same period last year. Through continuous strengthening of digital channels, sales from digital channels increased by 39% compared to the same period last year.

Performance growth was driven by strong sales of the fabric softener brand Le Chatela and the Salon de Maji Ampoule Treatment, which was launched on home shopping channels in January this year. In particular, the hygiene-specialized brand Labsin, launched in the fourth quarter of last year, rapidly grew and led the performance.

The cosmetics business recorded sales of 64.8 billion KRW and operating profit of 6.9 billion KRW, decreasing by 27.8% and 61.8% respectively compared to the same period last year. The contraction of the duty-free market and decreased demand for color cosmetics due to COVID-19 led to a decline in performance in major channels such as duty-free shops and home shopping, and the shrinkage of the key global market, China, also caused a decrease in performance.

On the other hand, the flagship cosmetics brand Age 20’s expanded its lineup and strengthened brand power through continuous investment in the Chinese market, increasing sales during China’s Women’s Day compared to last year. Notably, at the ‘Tmall Global TG1000 Partner Summit’ held in April, it won the ‘100 million RMB Brand Award’ and the ‘Star Product Award’ in the international category, raising brand awareness in the Chinese market.

This content was produced with the assistance of AI translation services.