Cosmecca Korea Reports Q1 Sales of 93.5 Billion KRW, Up 4.6% Year-on-Year

[Asia Economy Reporter Seungjin Lee] Cosmecca Korea, a cosmetics research and development and manufacturing company, announced on the 14th that it recorded sales of 93.5 billion KRW, operating profit of 3.4 billion KRW, and net profit of 2.8 billion KRW in the first quarter of this year based on consolidated financial statements.

Sales increased by 4.6% compared to the same period last year due to growth in overseas subsidiaries' sales in the United States and China. This is the highest quarterly sales ever. Operating profit slightly decreased, but net profit increased by 23.3%.

Sales of the Korean subsidiary increased by 0.3% compared to the same period last year to 55.7 billion KRW. Despite the impact of COVID-19, sales to export-oriented customers increased by 5.7 percentage points compared to the same period last year, showing a growth trend. Orders from a global dermatology pharmaceutical company incorporated in the fourth quarter of last year continue to increase.

Sales of the U.S. subsidiary, Inglewood Lab, increased by 8.9% (16.7% in USD) to 33.8 billion KRW (30.32 million USD). This was due to the effect of the U.S. government's economic stimulus measures and the start of COVID-19 vaccinations, which helped recover the cosmetics market. Sales increased due to increased orders of existing products from top customers and new product launches, and profitability also grew significantly due to increased orders from online customers. Sales of the Korean subsidiary Inglewood Lab Korea, located in Korea, reached 6.3 billion KRW, a 33.3% increase compared to the same period last year due to the expansion of SKUs (stock keeping units) for U.S. online customers.

Sales of the Chinese subsidiary increased by 64.9% compared to the same period last year to 9.3 billion KRW. This was mainly due to a 49.5 percentage point increase in sales from online customers compared to the same period last year. By product type, sales increased centered on base makeup, a color cosmetics product, as outdoor activities increased following the easing of COVID-19 impacts. The Chinese subsidiary recently reorganized its customers focusing on online regional brand companies driving the Chinese cosmetics market, and orders related to the ‘618 Shopping Festival,’ the Chinese version of Black Friday, are continuing, raising expectations for sales growth in the first half of the year.

Cosmecca Korea stated, “In the U.S., demand in the cosmetics market is recovering with the start of COVID-19 vaccinations, and the cosmetics market in China is experiencing favorable conditions,” adding, “In particular, sales growth is expected centered on online customers.”