Yeonwoo, First Half Operating Profit Increases 122.9%... Record-Breaking Performance

Yeonwoo company exterior. [Photo by Yeonwoo]

[Asia Economy Reporter Kim Jong-hwa] Yeonwoo Co., Ltd., a company specializing in cosmetic pumps and containers, announced on the 17th through its semi-annual report disclosure that it recorded consolidated sales of 148.1 billion KRW, operating profit of 16.4 billion KRW, and net profit of 13.9 billion KRW for the first half of 2021. Sales, operating profit, and net profit for the first half increased by 22.41%, 122.97%, and 108.07% respectively compared to the same period last year, achieving record-high performance.

In the second quarter, sales increased by 8.50% from the previous quarter to 77.1 billion KRW (up 30.64% year-on-year), operating profit was 9.9 billion KRW (up 112.97% year-on-year) with an operating margin of 12.89%, improving by 3.83 percentage points from the previous quarter. Net profit margin also improved by 2.23 percentage points from the previous quarter to 10.48%, recording 8.1 billion KRW (up 122.24% year-on-year).

Domestic sales led growth with 45.7 billion KRW, up 48.83% year-on-year, while export sales reached 31.4 billion KRW, growing 15.27% compared to the same period last year. By region, exports to the Americas increased by 38.20% year-on-year, leading growth, while quarter-on-quarter export growth rates were 30.49% in Europe, 15.79% in China, and 20.14% in other Asian markets.

Yeonwoo stated that sales of luxury products, in which the company holds a high market share, increased due to the activation of exports to the Chinese market, including the largest Chinese shopping festival '618 Shopping Festival' in the first half. They also achieved domestic sales growth driven by the recovery of consumer sentiment in both domestic and international markets and active new product launches by upstream customers.

A Yeonwoo official said, "To maximize continuous growth, we are further strengthening sales activities in the rapidly growing color cosmetics and eco-friendly product lines." The official added, "Although performance was sluggish due to the spread of COVID-19, we plan to focus on sales growth by expanding diversified sales networks in recovering European and Asian markets." The official also noted, "If sales increase continues through volume expansion enabled by these sales networks, this year could see record-high sales and significant profit growth."

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