Able C&C Returns to Profit After 9 Quarters

[Asia Economy Reporter Moon Hyewon] Able C&C, a global beauty company owning various brands such as Missha, A'PIEU, Chogongjin, Stila, Cellapy, and Lapothicell, announced on the 17th that it has turned a profit after 9 quarters.

Able C&C disclosed on the 16th that its consolidated sales for the first quarter of this year reached 56.4 billion KRW, with an operating profit of 500 million KRW. Although sales decreased by 14.8% compared to the same period last year, this performance is a 5.2 percentage point improvement compared to the 20% decline in consolidated sales in the first quarter of 2020. Operating profit also improved by 6.6 billion KRW compared to a loss of 6 billion KRW in the same period last year, and the operating profit margin improved significantly by 10 percentage points, marking a return to profitability for the first time in 9 quarters since the fourth quarter of 2019.

The operating profit of Able C&C’s headquarters also achieved 1.7 billion KRW, an improvement of 7.7 billion KRW compared to a loss of 5.9 billion KRW in the same period last year, with the operating profit margin growing by 16.3 percentage points, turning all segments profitable.

The main factors behind this turnaround in performance were analyzed as growth in overseas markets and the efficiency improvements in management systems and online-offline operations. Since being acquired by IMM PE in 2017, Able C&C has continuously sought new growth engines by persistently entering overseas markets while actively implementing strategies to improve its financial structure through fixed cost reduction and cost improvements.

In particular, sales from overseas subsidiaries centered on the US and Japan have continuously increased, driving performance improvement. The US subsidiary, which directly entered Amazon, a major channel in the US e-commerce market, recorded a 62.1% growth compared to the same period last year, while the Japanese subsidiary, focusing on expanding product lines and strengthening competitiveness tailored to local customer preferences and characteristics, saw sales increase by 13.7%.

Able C&C plans to continue improving profitability this year while focusing on non-financial achievements based on ESG management to build a solid foundation for sustainable growth. The transition of COVID-19 to the endemic stage, which has revived previously subdued demand for cosmetics, is also expected to have a positive impact on maintaining strong performance.

Able C&C has recently launched the premium herbal brand Chogongjin and started active marketing by selecting models for the professional makeup brand Stila and the low-irritant derma brand Cellapy.

In overseas markets, Able C&C will maintain continuous growth in the US and Japan while pioneering new markets such as Southeast Asia and South America. For the Chinese market, the company plans to pursue both growth and efficiency by strengthening selective marketing focused on core products.

Kim Yujin, CEO of Able C&C, said, “Achieving profitability despite difficult market conditions such as COVID-19 is a meaningful turning point for Able C&C’s leap forward,” adding, “We will grow into a global beauty company based on a diverse brand portfolio with strong individuality.”