Aekyung Industrial Reports Q1 Operating Profit of 7.7 Billion KRW, Down 39% YoY

[Asia Economy Reporter Seungjin Lee] Lifestyle beauty company Aekyung Industrial announced on the 11th that it recorded sales of 135.3 billion KRW, operating profit of 7.7 billion KRW, and net profit of 8.1 billion KRW in the first quarter of 2021. These figures represent decreases of 15.6%, 38.8%, and 11.7% respectively compared to the same period last year.

The household goods business posted sales of 85.6 billion KRW and operating profit of 800 million KRW, down 10.5% and 86% respectively from the same period last year. The cosmetics business recorded sales of 49.7 billion KRW and operating profit of 6.9 billion KRW, decreasing by 23.2% and 0.6% respectively compared to the previous year. The household goods business saw a relative decline as demand for personal hygiene products, which had temporarily surged during the same period last year when COVID-19 began to spread widely, normalized. The cosmetics business experienced a drop in sales performance in major domestic channels such as duty-free shops due to the prolonged impact of COVID-19.

Aekyung Industrial plans to overcome the current difficulties and prepare growth engines for the post-COVID-19 era by expanding its global presence and diversifying its product portfolio.

In the cosmetics business, as demand for cosmetics in the Chinese market is recovering, the flagship brand 'AGE 20’s' is strengthening its competitiveness. AGE 20’s maintains the number one market share in the BB category on ‘Tmall’ and has officially entered platforms such as ‘JD.com’, ‘Pinduoduo’, and ‘Kaola’.

Additionally, through a memorandum of understanding (MOU) with the Chinese cosmetics company ‘Proya Cosmetics’, Aekyung Industrial is expanding its offline channels by entering Proya’s offline stores. Alongside this, it plans to diversify hit products such as essence cover pact, sunscreen, and sun pact, and to revitalize the makeup specialty brand ‘LUNA’.

In the household goods business, the company also plans to accelerate the expansion of its global presence and product range. In particular, marketing efforts centered on the ‘Aekyung Kerasis’ flagship store opened on Tmall last year have begun to receive positive responses.

Aekyung Industrial intends to diversify its product portfolio. In the cosmetics business, it will reorganize three basic cosmetics brands?‘Point’, ‘Flow’, and ‘ASolution’?and expand its basic brand lineup by adding ‘Bongyeol’. In the household goods business, it will strengthen ‘Lapsin Home Vaccine’, which expands the ‘Lapsin’ brand from personal hygiene to household hygiene, and plans to increase the launch of premium household products.

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