[Asia Economy Reporter Jang Hyowon] Hana Securities analyzed on the 21st that despite a decrease in sales in China, iFamilySC's sales are experiencing high growth in domestic, US, and Southeast Asian markets.
iFamilySC's sales revenue and operating profit for the second quarter of this year were 21.8 billion KRW and 2 billion KRW respectively, marking increases of 22% and 218% compared to the same period last year. The improvement in overall performance was driven by a 26% increase in cosmetics sales compared to the previous year.
Among cosmetics sales, sales to China decreased by 76% compared to the previous year, but domestic cosmetics sales increased by 89% based on the H&B channel, and sales in other regions such as the US and Southeast Asia grew by 67%.
The operating profit margin rose by 5.6 percentage points year-on-year to 9.1%. This increase was attributed to the alleviation of fixed cost burdens due to sales growth and a low base from the previous year caused by stock compensation expenses. The decline in operating profit margin compared to the first quarter was due to increased selling and administrative expenses from the disposal of non-performing inventory, one-time advertising costs, and labor costs.
Researcher Park Jongdae of Hana Securities explained, “High growth in the H&B channel is expected to continue in the third quarter. The number of Olive Young shelf entries increased by 80 from the previous year to 920, and sales in other regions such as Japan and the US, excluding China, are also showing favorable trends.”
Researcher Park added, “Due to a significantly low base in China sales in the third quarter of last year caused by the impact of the Hanbok edition, third-quarter sales are expected to increase by 52% year-on-year to 21.6 billion KRW, and operating profit is expected to increase by 182% to 2.9 billion KRW.”
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