Aekyung Industrial Expands Overseas Market, Operating Profit Reaches 24.4 Billion KRW Last Year, Up 9% from Previous Year

[Asia Economy Reporter Moon Hyewon] Aekyung Industrial improved its operating profit and net income due to strengthened domestic and international digital capabilities and expansion in the global market.

On the 8th, Aekyung Industrial announced that its consolidated operating profit for last year was 24.385 billion KRW, an increase of 9.0% compared to the previous year. During the same period, sales decreased by 2.4% to 573.923 billion KRW, but net income rose by 42% to 16.279 billion KRW.

In particular, Aekyung Industrial explained that the global performance growth of cosmetics, along with positive results in the global market for household goods, led to achievements in expanding global reach and diversifying its portfolio.

The annual sales of the cosmetics business recorded 221.7 billion KRW, a 5.1% increase from the previous year, and operating profit rose 119.5% to 29.1 billion KRW. While domestic sales stagnated due to the prolonged impact of COVID-19, global performance drove the growth of the cosmetics business.

Aekyung Industrial is focusing on expanding sales by extending digital channels amid increasingly fierce competition in the Chinese cosmetics market. In November last year, it opened the Aekyung Kerasis flagship store on 'Tmall,' China's largest e-commerce platform, and is strengthening digital marketing using models such as actress Suzy and Chinese Wanghong influencers to enhance brand awareness.

Sales are also growing in countries outside China, expanding the global footprint. In Russia, the Kerasis Clinic line, which includes damage repair, moisturizing, elasticity, and scalp care, is receiving positive responses from Russian consumers who frequently dye their hair. Kerasis is expanding its recognition by entering various online and offline channels such as Magnit, Russia's largest distribution channel; Wildberries, Russia's largest online shopping mall; and Ozon, the oldest online shopping mall in Russia.

Additionally, by collaborating with Japanese distribution companies, Kerasis has entered the Japanese market, starting sales across online and offline channels nationwide. Sales channels include 400 Don Quijote stores and major local online shopping malls such as Rakuten and Qoo10.

Meanwhile, the household goods business recorded annual sales of 352.2 billion KRW, a 6.6% decrease, and operating profit turned to a loss of 4.7 billion KRW. Aekyung Industrial explained that profitability declined due to rising global raw material prices, intensified domestic competition, and continued marketing investments to secure growth drivers.

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