Able C&C Achieves Profit Last Year... "Substantial Results Online, Offline, and Overseas"

Consolidated Sales of 248 Billion KRW and Operating Profit of 10.1 Billion KRW

[Photo by Able C&C]

Able C&C announced on the 17th that its operating profit turned positive last year, reaching 10.1 billion KRW.

Last year, consolidated sales amounted to 248 billion KRW, down 5.7% compared to the previous year, but operating profit and EBITDA recorded 20.1 billion KRW, showing significant improvement. Accordingly, cash flow also increased by 9.7 billion KRW from 35.8 billion KRW in 2021 to 45.5 billion KRW last year.

In particular, following the upward trend in the third quarter of last year, sales in the fourth quarter also rose 7.8% year-on-year to 67.7 billion KRW, indicating that the company has entered a full-fledged growth trajectory.

Able C&C has focused on stabilizing its organization, enhancing work efficiency through business integration with subsidiaries, and reorganizing related departments. By relocating its headquarters to reduce fixed costs and improving inventory management health, it enhanced financial structure and accelerated performance improvement through continuous efficiency optimization of online and offline operations.

In the global market, the company quickly responded to changes in the Chinese market and diversified its overseas market portfolio to the United States, Japan, and others. Especially, sales of its key U.S. subsidiary have increased consecutively since 2020. It laid the foundation for growth by entering major e-commerce channels such as Amazon, North America's largest online shopping mall, and Saks Fifth Avenue's online luxury department store.

The Japanese subsidiary, which actively targets Japanese consumers' preferences with localized customer strategies, also saw continuous sales growth. Missha's performance, centered on drugstores and e-commerce channels, was particularly notable.

As a result, between 2020, when the direct impact of COVID-19 was felt, and last year, the U.S. and Japan subsidiaries have continued to make remarkable progress, growing at an average annual rate of 74.3% and 9%, respectively.

Able C&C expanded its target consumers across all generations by diversifying its brand portfolio, including existing brands Missha and A'PIEU, as well as Chogongjin, Stila, Cellapy, and Lapothicell, covering basic skincare, color cosmetics, oriental medicine, and derma fields. Additionally, each brand expanded its distribution channels such as Able Shop, Able C&C’s official mall, Coupang, Naver, and Olive Young, increasing consumer touchpoints.

Kim Yoo-jin, CEO of Able C&C, said, “It is very encouraging that Able C&C has achieved tangible results across various channels including online, offline, and overseas, despite the cosmetics industry as a whole struggling due to multiple factors. Having completed a high-intensity structural reform for stable management, this year we will achieve both quantitative and qualitative growth through aggressive marketing and continued management efficiency even amid the recession.”

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