Cosmax Reports Record Q1 Sales of 397.9 Billion KRW, Up 15% YoY

[Asia Economy Reporter Moon Hyewon] Cosmax announced on the 16th that its consolidated sales for the first quarter of this year reached 397.9 billion KRW, marking an all-time high. This represents a 15% increase compared to the same period last year.

The consolidated operating profit for this period sharply declined by 41% to 13.7 billion KRW. The operating profit margin stood at 3.5%.

Cosmax Korea's first-quarter sales recorded 205.1 billion KRW, a 9% increase from the same period last year. This growth was driven by the stable growth of major domestic clients and increased color cosmetics sales from global customers. The basic category grew by 9%, centered on essences, while the color cosmetics category increased by about 12%, led by foundations. In particular, as K-beauty re-spread within Japan, orders targeting the Japanese market steadily increased. However, operating profit decreased by 39% due to rising raw material prices and labor costs caused by the global supply shortage, leading to increased cost burdens.

Sales of the China subsidiary increased by 15% to 148.9 billion KRW. Net profit rose by 12% to 10.7 billion KRW. The company analyzed that sales of strategic product groups performed well, and online customer sales also expanded. They focused on securing numerous new online customers through differentiated product capabilities and shortened development periods.

The US subsidiary's sales surged 42% to 44.5 billion KRW. Net loss was 13.1 billion KRW. Cosmax explained that this was due to increased manufacturing costs such as freight charges, raw material prices, and labor costs caused by the global supply chain impact.

The Indonesia subsidiary's sales doubled, reaching 14.3 billion KRW. Net profit turned positive at 1.4 billion KRW. As the color cosmetics market recovered after COVID-19, inquiries for new product development in the color cosmetics category, such as cushions, increased. The company stated that it is recognized as the only manufacturer in the region capable of formulating halal, vegan, and organic ingredient products.

During the same period, Cosmax NBT's sales grew 13% to 78.6 billion KRW, marking the highest sales ever. Consolidated operating profit was 800 million KRW, with profitability improving due to increased exports and reduced selling and administrative expenses despite weak domestic demand. The online channel led the overall sales growth. The Australian subsidiary recorded sales of 8.6 billion KRW, a 14% increase.