Aekyung Reports Operating Profit of 39.1 Billion KRW Last Year, Up 60.4% YoY (Comprehensive)

Sales Revenue 610.4 Billion KRW... 6.4% Increase
Q4 Operating Profit Up 13.6% Year-on-Year

Aekyung Industrial announced on the 3rd that its sales for the past year reached 610.4 billion KRW, representing a 6.4% increase compared to the previous year.

During the same period, operating profit was recorded at 39.1 billion KRW, a 60.4% increase from the previous year.

The annual sales revenue of the cosmetics business decreased by 0.9% year-on-year to 219.7 billion KRW, and operating profit decreased by 2% to 28.5 billion KRW. The annual sales revenue of the household goods business increased by 10.9% year-on-year to 390.7 billion KRW, and operating profit turned positive to 10.6 billion KRW.

Aekyung Industrial's sales in the fourth quarter of last year increased by 11.4% year-on-year to 167.1 billion KRW, and operating profit rose by 151.9% to 11.8 billion KRW.

The cosmetics business recorded fourth-quarter sales of 65 billion KRW and operating profit of 8.8 billion KRW, growing 7.6% and 13.6% respectively compared to the same period last year. The improvement in the cosmetics business performance was driven by diversification into global markets outside China, recovery of domestic home shopping channels, and growth in digital channels.

In particular, the brand achieved its best-ever performance during Black Friday on Amazon in the United States. The makeup-specialized brand LUNA expanded its sales channels by entering 12 major offline channels in Japan, including LOFT and PLAZA. In China, the company diversified sales channels by focusing on live commerce channels, minimizing the impact of renewed COVID-19 outbreaks and consumption downturns within the country.

The household goods business posted fourth-quarter sales of 102 billion KRW, a 13.9% increase year-on-year, and operating profit of 3 billion KRW, turning positive. The household goods business improved its performance thanks to enhanced brand portfolio and growth in global operations. The brand portfolio was strengthened through expansion of premium brands and growth in the personal care category, while global performance grew due to country-specific marketing activities and product localization efforts.

Aekyung Industrial explained, "Despite difficult business conditions such as deteriorating domestic and international management environments and a slowdown in China's consumer market last year, we achieved improved sales and profits through strengthening domestic and international digital channels, expanding global presence, and diversifying our brand portfolio."