KOLMAR Korea "Targeting 2 Trillion KRW Sales Next Year and 10% Annual Growth Until 2025"

[Asia Economy Reporter Moon Hyewon] Kolmar Korea has set a target of 2 trillion KRW in sales next year and an average annual growth rate of 10% until 2025.

According to the cosmetics industry on the 27th, Kolmar Korea announced this during a CEO (Chief Executive Officer) meeting held on the 23rd for analysts and investors.

The domestic corporation plans to expand business operations and increase the share of color cosmetics from 25% to around 30% based on separate financial statements in 2021.

In North America, the PTP and CSR corporations changed their names to KOLMAR USA (USA corporation) and KOLMAR CANADA (CANADA corporation). The USA corporation is normalizing through the completion of acquiring remaining shares and workforce adjustments in 2021, while the CANADA corporation announced plans to increase sales and turn profitable in the second half of the year.

Regarding China, it was analyzed that the impact of COVID-19 lockdowns was relatively small, and Wuxi (Jiangsu Province) is expected to achieve an annual break-even point (BEP). Additionally, they announced the establishment of a Singapore corporation and plans to expand operations to Southeast Asia, Europe, the Middle East, and Africa.

Kolmar Korea expects that HK inno.N, representing its pharmaceutical business, will enable full-scale high growth starting from the second quarter of this year. Following the completion of intravenous solution facility expansion, they plan to prove growth results by increasing exports of HK inno.N’s peptic ulcer treatment ‘K-CAB’ to 32 countries and expanding the HB&B (health functional foods, cosmetics, beverages) business area.

In particular, from the third quarter, performance from mergers and acquisitions (M&A) is expected to be reflected. Earlier, Kolmar Korea signed a stock purchase agreement (SPA) in April to acquire Yeonwoo, a cosmetics container company. This is four years after acquiring CJ Healthcare (now HK inno.N) in 2018. The contract closing date (expected transfer date) is the 1st of next month.