Cosmax Achieves Record 2Q Performance... "Thanks to Reopening" (Comprehensive)

Cosmax announced on the 10th that it achieved its highest-ever performance in Q2 this year on a consolidated basis, driven by strong domestic market conditions and increased exports to Japan.

Cosmax disclosed that its consolidated operating profit for Q2 this year rose 167.3% compared to the same period last year, reaching 46 billion KRW. During the same period, sales increased by 18.3% to 479.3 billion KRW, and net profit surged 414.4% to 27.4 billion KRW.

Both operating profit and sales on a consolidated basis for Q2 were record highs for Cosmax, with an operating profit margin of 9.6%.

For the Korean subsidiary, sales grew due to a strong domestic market driven by the Q2 reopening effect and increased exports to Japan. The basic and color cosmetics categories showed generally balanced growth. Sales were recorded at 278.3 billion KRW, up 23.4% year-on-year. Benefiting from the leverage effect of high sales growth, operating profit rose 63.3% year-on-year to 30.4 billion KRW.

The Chinese subsidiary’s performance was sluggish due to continued economic slowdown in China and a weaker-than-usual 618 shopping festival. Despite the base effect, retail sales growth in the Chinese cosmetics market was limited to 13.8% year-on-year. On a consolidated basis in China, sales grew 12% year-on-year to 153.8 billion KRW, in line with market growth, and net profit increased 1% to 10.9 billion KRW.

Cosmax stated, "Although growth in the Chinese market is progressing very gradually, it is recovering with steady upward growth," and added, "With current government-level policies aimed at improving unemployment rates and stimulating consumption, these issues are expected to be resolved over time."

The U.S. subsidiary posted consolidated sales of 38.1 billion KRW, a 0.2% increase year-on-year. Net loss was 10.5 billion KRW, with the deficit narrowing by 31.3% compared to the same period last year. Cosmax explained that it maximized profits by expanding ODM volume to 75% of total sales in the OEM-centered U.S. market. It plans to further expand new brand clients through the opening of a sales office in the western region within this year.

The Indonesian subsidiary’s sales grew 40.7% year-on-year to 20.7 billion KRW. Net profit soared 574.8% to 1.4 billion KRW. This was driven by continued orders from major online and offline clients, supported by the reopening effect. The color cosmetics category, centered on lip products, significantly increased its share.

The Thai subsidiary’s sales reached 6.8 billion KRW, doubling with a 101% year-on-year growth. Net loss narrowed by 77% to 0.5 billion KRW. Growth was led by foundation and eye makeup products, with steady increases in orders for color cosmetics driving the growth trend.

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