"Indie Brands Hit the Jackpot"... Cosmecca Korea Achieves Record-High Quarterly Results

Cumulative Operating Profit for Q1?Q3 Reaches 62.5 Billion Won
Surpasses Last Year’s Annual Operating Profit
Korean Subsidiary Revenue Up 57.4% Year-on-Year

With strong performances from both domestic and international K-beauty indie brands, Cosmecca Korea, a cosmetics Original Development Manufacturing (ODM) company, achieved its highest-ever quarterly results in the third quarter.

According to the Financial Supervisory Service's electronic disclosure system on November 6, Cosmecca Korea's consolidated operating profit for the third quarter was provisionally tallied at 27.2 billion won, a sharp increase of 78.8% compared to the same period last year. Revenue during the same period rose 44% to 182.4 billion won, while net profit jumped 161.1% to 22.3 billion won. All three figures represent the highest quarterly results in the company's history.

Exterior view of Cosmecca Korea. Provided by Cosmecca Korea

Compared to the previous quarter, revenue, operating profit, and net profit increased by 12.8%, 18.1%, and 106.9%, respectively, demonstrating robust growth. The cumulative operating profit for the first to third quarters of this year reached 62.5 billion won, surpassing last year's annual operating profit of 60.4 billion won.

This was driven by a surge in orders as both domestic and international indie brands experienced rapid growth. The Korean subsidiary's third-quarter revenue reached a record 129.8 billion won, up 57.4% year-on-year. The company’s Time to Market strategy enabled swift responses to client demands, while the export growth of K-beauty indie brands and accelerated acquisition of new clients fueled further expansion. In particular, the company's proprietary cleansing oil and Fillshot products became bestsellers on Amazon and TikTok, respectively, significantly boosting performance.

In the United States, the subsidiary Englewood Lab recorded second-quarter revenue of 61.8 billion won, a 50.3% increase year-on-year, also marking a quarterly record. The company explained that strong reorders from U.S. indie brands and increased sales of OTC (Over-the-Counter) sunscreen products contributed to this growth. Englewood Lab is responding to tariff risks and supply uncertainties by operating a dual production system in New Jersey (Made in USA) and Incheon (Made in Korea) according to client requests. Cosmecca Korea plans to expand its production base in the United States and further enhance its product portfolio over the mid- to long-term.

Meanwhile, Cosmecca China, the Chinese subsidiary, posted revenue of 8.1 billion won, a 12.8% decrease compared to the same period last year. Currently, joint development projects between the Korean and Chinese R&D centers are underway, focusing on new functional products such as sun protection and whitening. Additionally, the company is working to obtain HALAL certification to build a product portfolio that covers both the Chinese domestic and Southeast Asian markets. Cosmecca Korea aims to recover local sales in the short term and expand its market share in China and Southeast Asia over the mid- to long-term.

Jo Imrae, Chairman of Cosmecca Korea, stated, "We have expanded our product portfolio through continuous R&D investment and diversification of formulations. Recently, we have also begun to secure new orders from not only K-beauty indie brands but also global indie brands, which gives us strong mid- to long-term growth prospects."

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