Aekyung Industrial Reports Operating Profit of 5.8 Billion KRW in Q2... Returns to Profitability

[Asia Economy Reporter Lim Hye-seon] Lifestyle beauty company Aekyung Industrial announced on the 6th that it recorded an operating profit of 5.8 billion KRW in the second quarter, turning to a profit compared to the same period last year. Sales increased by 17.3% year-on-year to 143 billion KRW, and net profit also turned positive at 3.2 billion KRW.

Accordingly, operating profit and net profit for the first half of the year were 13.5 billion KRW and 11.2 billion KRW respectively, increasing by 19.4% and 117.7% compared to the same period last year. Sales amounted to 278.3 billion KRW, down 1.4% year-on-year.

The cosmetics business recorded sales of 110.9 billion KRW and operating profit of 16 billion KRW in the first half, increasing by 13.8% and 252.2% respectively compared to the same period last year. The significant growth in overseas cosmetics performance led the overall improvement in cosmetics results.

The household goods business recorded sales of 67.4 billion KRW in the first half, down 9.5% year-on-year, and turned to a loss with an operating loss of 2.5 billion KRW.

Demand for personal hygiene products, which temporarily surged during the same period last year when COVID-19 began to spread in earnest, normalized, leading to a relative decline in performance. Additionally, operating profit decreased due to increased marketing investments targeting the rapidly growing digital channels.

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.

The household goods business will accelerate global expansion and product diversification. In particular, the hair care brand ‘Kerasis’ participated for the first time in China’s 618 shopping festival and achieved positive results. Along with this, premium new brands such as the fabric softener brand ‘Herb Mari 1848’, the women’s bio brand ‘ChiuuB’, and the special hair care brand ‘Dibs’ will be launched to continuously strengthen the brand and expand categories.

In the cosmetics business, the AGE 20’s brand has maintained its number one market share in the BB category on TMALL by expanding its share following strong performance at the 618 event in the Chinese market. It has also officially entered platforms such as JD.com (Jingdong), Pinduoduo, and Kaola, and through a memorandum of understanding (MOU) with Chinese cosmetics company Proya Cosmetics, it has entered Proya’s offline channel stores, expanding both online and offline channels.

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