[Click eStock] "Kolmar BNH, Maintaining Continuous Growth Momentum"

Q4 Inventory Adjustment Issue Resolution and Export Market Expansion Expected to Sustain Strong Performance Growth

Kolmar BNH Sejong Plant (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that Kolmar BNH maintains continuous growth momentum.

According to Shin Young Securities on the 23rd, Kolmar BNH recorded consolidated sales of 146.3 billion KRW and operating profit of 23.1 billion KRW in the third quarter, falling short of market expectations. Factors such as the off-season for cosmetics, inventory adjustments by client companies, and fixed cost burdens from the new factory affected the results.

Researcher Kim Jeongseop of Shin Young Securities explained, "In the second quarter, due to promotions by major clients aligned with the peak season, excess demand volume was reflected, leading to inventory adjustment issues in the third quarter. Additionally, fixed cost burdens increased with the operation of the third domestic Eumseong factory, making margin decline inevitable."

However, Kim believes there is no change in the growth momentum. He emphasized, "In the fourth quarter, sales normalization is expected due to the resolution of inventory adjustment issues and expansion of export countries (Hong Kong, India, Colombia), continuing the high growth trend. Since July, exports of Atomy products to China have been underway, and as the number of Atomy members in China continues to increase, additional volume expansion is possible next year."

Next year is expected to see steady growth through the full-scale export of Atomy products to China, expansion of export countries outside China, full operation of the domestic Eumseong third factory, and the start of operations at Yantai Kolmar and Jiangsu Kolmar in China. Researcher Kim stated, "Yantai Kolmar, established as a joint venture with China Atomy, is expected to receive production approval as early as the first half of next year."