Cosmax Reports Q1 Operating Profit of 23.3 Billion KRW, Up 45% Year-on-Year
[Asia Economy Reporter Seungjin Lee] Cosmax announced on the 11th that its sales and operating profit in the first quarter of 2021 increased by 5% and 45% respectively compared to the same period last year, reaching 345 billion KRW and 23.3 billion KRW. Net profit turned positive, recording 9.8 billion KRW, a growth of 721%.
Cosmax led overall growth as consumption in the Chinese market recovered.
Looking at the performance by corporation, the Korean corporation's skincare category grew by about 9% in the first quarter. In particular, specific category products such as eye palettes grew explosively, driving the Korean corporation's performance.
The Chinese corporation's first-quarter sales grew 48% year-on-year to 129.5 billion KRW, with net profit turning positive at 9.6 billion KRW and operating profit margin reaching double digits. Online client sales led the growth, with 16 out of the top 20 clients in China being online customers. Within the makeup category, sales of basic products such as cushions and foundations, as well as lip products, were high.
The US corporation is gradually recovering performance mainly with basic products. Sales recorded 31.4 billion KRW, a 4% decrease compared to the same period last year, but Cosmax expects sales to recover as new client volumes begin to enter the market in the second half of this year.
The Indonesian corporation experienced a decline in both sales and operating profit due to sluggish high-margin color cosmetics. This was influenced by the continued spread of COVID-19 and the ongoing daily use of masks. On the other hand, online sales are on the rise, and the company plans to respond to the online market through additional new product development, research innovation, and sourcing of materials.
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The Thai corporation achieved breakeven for two consecutive quarters. Reorders of existing products such as concealers and brow gels continued due to rebranding and strong promotions by major offline clients. Cosmax analyzed that sales will continue to rise due to strong sales of new products such as Cica cream and bakuchiol serum.
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