Aekyung Industrial's Operating Profit in H1 Down 10.9% YoY... "Impact of China Lockdown"

[Asia Economy Reporter Moon Hyewon] Aekyung Industrial announced on the 4th that its sales in the first half of this year reached 281.7 billion KRW, a 1.2% increase compared to the same period last year, while operating profit recorded 12 billion KRW, a 10.9% decrease.

Among these, sales in the second quarter of this year were 141.8 billion KRW, and operating profit was 4.2 billion KRW, down 0.8% and 27.9% respectively compared to the same period last year. This performance is attributed to China's lockdown orders and the worsening domestic and international economic conditions.

By business segment, the cosmetics business recorded sales of 99.6 billion KRW and operating profit of 11 billion KRW in the first half, down 10.2% and 31.2% respectively compared to the same period last year. The resurgence of COVID-19 and city lockdowns in China caused difficulties in the Chinese market performance.

However, it is explained that the company is diversifying its global portfolio through increased brand awareness and sales growth in global markets outside China. In the domestic market, marketing strategies have been strengthened in line with the easing of social distancing and increased outdoor activities, showing a sales recovery trend through product launches in preparation for the summer season.

The household goods business recorded sales of 182.1 billion KRW in the first half, an 8.8% increase compared to the same period last year, and operating profit turned positive at 1 billion KRW. Market share growth of home care brands such as the laundry detergent 'Rique' and fabric softener 'Le Chatra', along with strengthening of premium brands, improved sales and operating profit compared to the same period last year. In particular, it is explained that the company is expanding its global presence centered on personal care brands such as Kerasis and Shower Mate.

An Aekyung Industrial official stated, "To overcome the ongoing domestic and international economic downturn, we plan to continuously strengthen domestic and overseas digital channels, expand globally, and diversify our portfolio."

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