Cosmax Reports 229% YoY Increase in 1Q Operating Profit... Quarterly Sales Reach Record High

1Q Sales 526.8 Billion KRW · Operating Profit 45.5 Billion KRW
Increase in Domestic Consumption and Exports to US and Japan

Cosmax announced on the 13th that its operating profit for the first quarter of this year was preliminarily estimated at 45.453 billion KRW, a 229.1% increase compared to the same period last year.

During the same period, sales reached 526.82 billion KRW, marking a 30.6% increase. Cosmax's sales for the first quarter of this year are the highest ever on a quarterly basis. Net profit for this period was recorded at 19.618 billion KRW, a 2654.3% increase compared to the same period last year.

Cosmax CI. [Image provided by Cosmax]

Regarding the first quarter performance, Cosmax emphasized, "Domestic consumption increased and exports to customers in the United States and Japan continued to grow," adding, "By achieving the highest quarterly sales ever, we have solidified our position as the world's number one cosmetics original design manufacturer (ODM)."

Looking at the first quarter performance by major subsidiaries, the Korean subsidiary recorded sales of 315.4 billion KRW, a 29.6% growth compared to the same period last year, and operating profit of 30.1 billion KRW, a 130.7% increase. The operating profit margin was 9.5%. A Cosmax representative explained the strong performance of the Korean subsidiary by saying, "Profit grew along with sales growth," and "The expansion of high-margin product lines such as cushions and foundations improved operating profit."

For the Korean subsidiary, the sales composition in the first quarter consisted of 54% basic products and 46% color cosmetics. It was explained that exports from major indie brand customers and growth in makeup products are continuing. Cosmax stated, "As the number of foreign visitors to Korea steadily increases, domestic cosmetics consumption is entering a recovery phase," and forecasted, "An increase in tourist inflow is expected during the May Labor Day holiday in the second quarter of this year."

The Chinese subsidiary also saw growth in both sales and operating profit, reflecting the recovery of the local cosmetics market and the inclusion of joint venture (JV) sales with Chinese cosmetics company Yisen Group in Guangzhou subsidiary’s results starting from the first quarter. The consolidated sales of the Chinese subsidiary for the first quarter reached 157.4 billion KRW, a 28.5% increase year-on-year. Operating profit for the same period rose 65.4% to 9.1 billion KRW.

Cosmax China recorded sales of 107.6 billion KRW, a 17.5% increase compared to the same period last year, driven by stable growth in sales from indie customers. Cosmax Guangzhou also posted sales of 46.8 billion KRW, a 57.7% increase year-on-year, as major brands of Yisen Group grew by more than 50%.

The U.S. subsidiary posted sales of 38.8 billion KRW, a 43.2% increase compared to the same period last year. This was due to growth from customers in the eastern U.S. region, with the ODM ratio approaching 80%. Demand from indie customers in the western region also increased, and Cosmax plans to actively expand its business from its Los Angeles office starting in July. Additionally, in response to increased demand for sun care products, a new over-the-counter (OTC) sun care product was launched.

Cosmax Indonesia showed growth as new sales from local customers increased and new customers were secured in neighboring countries such as Malaysia. The Indonesian subsidiary’s first quarter sales rose 25.8% year-on-year to 24.1 billion KRW. Cosmax Thailand’s sales increased 87.5% during the same period to 9.5 billion KRW. This is attributed to the recovery of consumer sentiment in Thailand and the stabilization of inflation rates, which boosted demand for cosmetics.

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