Yeonwoo, Record High Operating Profit Since Establishment in Q3

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 15th that its consolidated sales for the third quarter of 2021 increased by 7.62% year-on-year to 68.3 billion KRW, operating profit rose by 221.70% to 6.4 billion KRW, and net profit surged by 385.92% to 6.6 billion KRW.

Yeonwoo has exceeded the operating profit and net profit records of 2019, which were the highest since its establishment, within just the third quarter of this year, continuing a strong growth trend even during the third quarter, a seasonal low period for the cosmetics industry.

For the cumulative results of the third quarter, sales increased by 17.32% year-on-year to 216.4 billion KRW, operating profit rose by 143.97% to 22.8 billion KRW, and net profit increased by 154.85% to 20.5 billion KRW. The cumulative operating profit margin for the third quarter was 10.52%, up 5.46 percentage points compared to the same period last year.

Exports in the third quarter of 2021 recorded 29.2 billion KRW, a 3.96% decrease year-on-year due to shipment delays caused by logistics difficulties amid the COVID-19 pandemic. However, domestic sales grew significantly by 18.23% to 39.2 billion KRW, offsetting the export slump caused by the resurgence of COVID-19.

A Yeonwoo official explained, "The third quarter each year typically experiences a seasonal slowdown in sales due to reduced market demand influenced by summer vacations and the Chuseok holiday, coupled with fewer production working days. However, steady demand growth from our front-end clients allowed us to continue domestic sales growth."

The official added, "It is a noteworthy achievement that Yeonwoo recorded its highest operating profit in the third quarter at the start of the With-Corona era. The deferred sales due to export logistics disruptions are confirmed, so as export bottlenecks gradually ease, export sales in markets such as the Americas, Europe, and Asia are expected to expand further."

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