Able C&C Achieves Profit Turnaround in One Year

[Asia Economy Reporter Yujin Cho] Able C&C has succeeded in turning its operating profit positive after one year and led a rebound in sales.

Able C&C announced on the 20th that its consolidated sales for last year were 422.2 billion KRW, operating profit was 1.8 billion KRW, and net loss was 9.8 billion KRW on a provisional basis. Sales increased by 22.2% compared to the same period last year, and operating profit turned positive. However, a one-time loss occurred in non-operating expenses, resulting in a net loss of 9.8 billion KRW.

The company overcame an operating loss of 19 billion KRW in 2018 within one year and achieved a turnaround to profitability. Sales also increased for the first time in three years since 2016, marking a successful rebound.

Able C&C’s performance improvement is interpreted as due to strong overseas business. Last year, overseas business sales reached 121 billion KRW, growing 15% compared to the same period last year. Europe led with 26% growth, followed by Asia at 22%, and other regions at 114% growth.

The performance of overseas subsidiaries was also strong. Able C&C’s Japan subsidiary recorded sales of 38.4 billion KRW last year, a 70% increase compared to the previous year. The best-selling product, ‘Magic Cushion,’ contributed to sales growth with cumulative local sales in Japan surpassing 10 million units. The number of sales outlets in Japan also exceeded 25,000 last year.

Online business sales increased by 31%, from 29.2 billion KRW in 2018 to 38.4 billion KRW last year. The proportion of online sales in Able C&C’s total sales also rose by 2 percentage points, from 9% to 11% on a separate basis.

The flagship brand Missha also contributed to performance improvement by launching hit products. The ‘Gaeddongsuk Essence’ released by Missha in March last year surpassed 500,000 units in cumulative sales within one year, establishing itself as a new representative product. The ‘Dear Rouge,’ launched in February, sold more than 850,000 units last year. The renewed Super Aqua Ultra Hyalon Cream in July sparked attention as the best cost-effective product.

Able C&C is expected to continue its strong performance this year as well. The overseas business division is actively expanding into new countries such as Europe, South America, and the Middle East. The online business division is also preparing a new business model to create synergy with offline channels.

The newly launched Blanc BB Cream and Vita C Plus Line have received a hot response, with initial stocks selling out immediately after release. The multi-brand shop Nunk, launched in May last year, is smoothly expanding, recently opening its 42nd store. Nunk plans to increase its stores to 150 within this year.

Shin Hyuncheol, Chief Financial Officer (CFO) of Able C&C, said, “Despite the challenging environment of domestic recession and intensified competition, we have caught both rabbits of turning a profit and sales growth. With the foundation for a rebound firmly established through efforts over the past few years, we will achieve even better results this year with a more aggressive business strategy.”