Cosmeca Korea Achieves 112 Billion KRW in Q2 Sales, Up 23.1% YoY

[Asia Economy Reporter Seungjin Lee] Cosmecca Korea, a cosmetics research and development and manufacturing company, surpassed 100 billion KRW in sales for the first time in the second quarter of this year, setting a record for the highest quarterly performance.

On the 17th, Cosmecca Korea announced that its consolidated sales for the second quarter of this year reached 112 billion KRW, operating profit was 8.8 billion KRW, and net profit was 4.6 billion KRW. Compared to the same period last year, sales increased by 23.1%, operating profit by 298.2%, and net profit by 983.2%.

The performance for the first half of this year has already surpassed the full-year results of last year. The first half sales amounted to 205.4 billion KRW, operating profit was 12.1 billion KRW, and net profit was 7.3 billion KRW, exceeding last year’s full-year operating profit of 9.9 billion KRW and net profit of 3.4 billion KRW. The operating profit margin grew by 5.5 percentage points year-on-year to 7.9%.

Cosmecca Korea explained that sales of overseas subsidiaries, including those in the United States and China, increased sharply, achieving external growth, and profitability improved due to the operating leverage effect.

Looking at the performance by subsidiary, the Korean subsidiary’s second-quarter sales increased by 9.7% year-on-year to 63.7 billion KRW. Growth was driven by increased sales to export-oriented clients and indie brand customers. Operating profit decreased compared to the same period last year due to factors such as reduced orders for products like sunscreen caused by decreased outdoor activities amid COVID-19.

The US subsidiary, Inglewood Lab, recorded second-quarter sales of 48.9 billion KRW, a 58.2% increase year-on-year. Sales grew as top US clients reordered existing products or expanded product SKUs. The subsidiary Inglewood Lab Korea also reflected deferred sales from the first quarter and increased orders from US clients implementing an omnichannel (online and offline integrated) strategy, boosting sales. Operating profit turned positive year-on-year to 6.4 billion KRW, with an operating profit margin of 13.1%.

The Chinese subsidiary’s sales increased by 106.8% year-on-year to 11.7 billion KRW. Orders increased mainly in base makeup and lip gloss product categories, with the proportion of color cosmetics in total sales rising by 16.9 percentage points year-on-year to 48.3%. In the second half, sales growth is expected due to the expansion of product categories for local brands, and operating losses are expected to gradually improve due to the operating leverage effect.

A Cosmecca Korea official stated, “There was a decline in performance in the second quarter of last year due to the impact of COVID-19,” adding, “As a result of efforts to diversify clients and product categories, we were able to emerge from the stagnant phase and realize tangible results in the second quarter of this year.”

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