"Sun Care and Color Cosmetics Powerhouse" ... KOLMAR Korea's 1Q Operating Profit Soars 85%

Record-High First Quarter Results in Domestic Business Segment
Inquiries for U.S. Production Increase Due to Trump's Tariff Policies
Chinese Subsidiary Sales Up 20% Driven by Increased Sun Care Orders

KOLMAR Korea achieved double-digit growth rates in both sales and operating profit in the first quarter. This performance is attributed to solid domestic results and a significant improvement in overseas subsidiaries, driven by increased orders for color cosmetics and sun care products.

According to the Financial Supervisory Service's electronic disclosure system on May 9, sales in the first quarter of this year reached KRW 653.1 billion, marking a 14% increase compared to the same period last year. Operating profit rose by 85% to KRW 59.9 billion. Net profit for the period increased by 92% to KRW 23.2 billion.

The domestic business, which accounts for the largest portion of KOLMAR Korea's sales, posted sales of KRW 274.3 billion and operating profit of KRW 33.9 billion. These figures represent increases of 11% and 49%, respectively, compared to the first quarter of last year. In the first quarter, both sales and operating profit in the domestic business segment reached record highs, demonstrating robust growth. Sun care products were the main driver of this performance. The proportion of sun care products rose to 27%, up 12 percentage points from the first quarter of last year. The increase in export demand for popular sun care brands is believed to have contributed to the improved results.

The color cosmetics segment also performed strongly. Sales in this segment grew by approximately 34% year-on-year. In addition, sales from major clients preparing for IPOs increased, and direct export volumes to global clients also rose, further boosting results. A KOLMAR Korea representative stated, "In the second quarter, we expect increased orders from brands due to the peak season for sun care products," and added, "With clients diversifying their export destinations, we anticipate growth in both sales and profitability."

The U.S. subsidiary (Plant 1) recorded sales of KRW 27.1 billion and operating profit of KRW 1.5 billion. Sales increased by 211% over the same period, and operating profit turned positive. Plant 1, which primarily produces color cosmetics, benefited from an expanded product lineup for its largest client, which was a key factor in the improved results. The establishment of a stable sales channel with a West Coast-based color cosmetics brand was also a positive development. Taking into account the Technology Sales Center cost of KRW 1.8 billion, actual operating profit was KRW 3.3 billion.

Sales at the U.S. subsidiary are expected to increase significantly once the second U.S. plant becomes operational. In particular, the rise in inquiries from global and Korean brands about local production in the U.S., influenced by President Donald Trump's tariff policies, is seen as a positive sign. A KOLMAR representative explained, "Although the schedule was delayed from the original plan (April) due to additional utility construction, we expect to begin plant operations after receiving temporary completion approval in May," and added, "Some clients plan to start mass production in the second half of the year."

In contrast, the Canadian subsidiary posted sales of KRW 8.7 billion and an operating loss of KRW 1.3 billion, reflecting weak performance. This is believed to be due to global brands reducing their production volumes in Canada since last year as a result of tariff policies, which has been reflected in the results.

The Chinese subsidiary recorded sales of KRW 46.1 billion and operating profit of KRW 3.1 billion, representing increases of 20% and 73%, respectively, compared to the same period last year. Despite delayed economic recovery in the Chinese market, major clients increased their orders for sun care products, contributing significantly to the results. By category, sales were distributed as follows: sun care (26%), skin care (19%), and color cosmetics (46%).

YEONWOO, the packaging subsidiary, posted an operating loss of KRW 1 billion and sales of KRW 63.7 billion, a 5% year-on-year decline, due to business structure improvements. Pharmaceutical company HK inno.N recorded sales of KRW 247.4 billion and operating profit of KRW 25.4 billion, marking increases of 16% and 47%, respectively, over the same period. Prescriptions for the new gastroesophageal reflux disease drug "K-CAB" reached KRW 51.4 billion in the first quarter, up 14% year-on-year, while sales of the hangover remedy "Condition" rose by 6% to KRW 14 billion compared to the same period last year.

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