Aekyung Industrial Reports Q2 Loss Turnaround Due to COVID-19 Impact

[Asia Economy Reporter Yujin Jo] Lifestyle beauty company Aekyung Industrial (CEO Jae-young Lim) announced on the 10th that it recorded an operating loss of 1.3 billion KRW in the second quarter of this year on a consolidated basis, turning to a deficit. During the same period, sales decreased by 22.5% year-on-year to 121.9 billion KRW, and net loss amounted to 4 billion KRW, also turning to a deficit.

For the first half of the year, the company recorded sales of 282.3 billion KRW and operating profit of 11.3 billion KRW. Compared to the same period last year, sales decreased by 16% and operating profit by 61.1%.

The company explained that the deterioration of domestic and overseas market conditions due to the prolonged COVID-19 pandemic caused a sharp decline in the cosmetics business performance, which led to the overall performance deterioration. On the other hand, the household goods business saw increased performance due to rising demand for hygiene products and agile market response.

The household goods business recorded cumulative sales of 184.8 billion KRW and operating profit of 6.8 billion KRW in the first half, growing by 6% and 6.2% respectively compared to the same period last year. The household goods business continues to grow steadily as sales through digital channels increased by more than 20% year-on-year through continuous strengthening of digital channels. In addition, the hygiene-specialized brand ‘Lapsin’ drove performance through high demand and overseas expansion.

The cosmetics business recorded cumulative sales of 97.4 billion KRW and operating profit of 4.5 billion KRW, decreasing by 39.8% and 80% respectively compared to the same period last year. Due to the impact of COVID-19, the contraction of domestic and overseas cosmetics markets and decreased demand for color cosmetics led to a decline in performance across major channels.

Aekyung Industrial plans to continue preparations for the post-COVID era amid the uncertain market environment caused by the prolonged pandemic. To this end, it is continuously investing in strengthening domestic and overseas digital channels and digital marketing activities.

As a result, it achieved about 50% growth compared to the previous year during China’s 618 shopping festival. In addition, in June, it opened the ‘AGE 20’s’ brand store on ‘Amazon,’ the world’s largest e-commerce company, marking its first step into the U.S. market.

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