AK Holdings Releases First Earnings Report After Taekwang Merger... Sales Up 5.1%

Cosmetics Sales Up 13%... Strengthening Presence in Europe, the US, and China
Improved Profitability in Household Goods... Expanding Global Distribution through Walmart and Rossmann

AK Holdings announced on May 11 that its consolidated sales for the first quarter of 2026 reached KRW 158.8 billion, marking a 5.1% increase compared to the same period last year.

This marks the first quarterly earnings release since Taekwang Group's merger and acquisition (M&A) of AK Holdings, drawing significant attention from the industry. However, due to one-off expenses, operating profit swung to a loss.

The operating loss amounted to KRW 1.588 billion, turning from an operating profit of KRW 6.044 billion in the same period last year. Excluding one-off expenses, operating profit was KRW 5.7 billion. Net profit for the period surged 172.2% year-on-year to KRW 13.698 billion.

Operating profit excluding one-off expenses was KRW 5.7 billion, reflecting robust profitability, and net profit stood at KRW 13.7 billion. However, when one-off expenses were included, an operating loss of KRW 1.6 billion was recorded.

AK Holdings is aiming to become a global beauty company by focusing on key strategies such as diversification of global markets, expansion of its product portfolio, strengthening of digital and growth channels, and improving profitability with a premium focus. In fact, during the first quarter, the company newly entered major global distribution channels including Walmart in the United States, Matsumoto Kiyoshi in Japan, and Rossmann in Poland.

In the cosmetics business, first-quarter sales were KRW 51.9 billion, up 13%. Although there was an operating loss of KRW 1.5 billion, the company posted an operating profit of KRW 500 million when excluding one-off expenses.

The skincare brand signiq expanded into Amazon and TikTok Shop in the United States as well as Tmall and TikTok in China. The makeup brands Age20's and Luna entered Poland and the United Kingdom, respectively, strengthening their presence in the European market.

AK Holdings plans to nurture skincare brands such as signiq and One Thing, while also driving the global expansion of its makeup brands, with the goal of increasing the proportion of cosmetics sales to over 50% by 2028.

The household goods business recorded sales of KRW 103.7 billion and operating profit of KRW 200 million. Compared to the previous year, these figures decreased by 0.3% and 95.8%, respectively. However, operating profit excluding one-off expenses was KRW 5.5 billion, up 12.2% year-on-year.

AK Holdings plans to develop Kerasis, Shower Mate, and Love Scent into global mega brands, strengthen global and digital marketing, and expand its foundation for mid- to long-term growth with a premium product-centered strategy.

An AK Holdings representative stated, "To become a global total beauty company, we are establishing strategies that reflect changes in domestic and international consumer environments and market trends, such as diversifying our brand portfolio, promoting globalization, strengthening our response to growth channel platforms, and enhancing profitability based on premium products. We plan to increase competitiveness in each market while laying the foundation for sustainable mid- to long-term growth."

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