KOLMAR KOREA Reports Operating Profit of 73.3 Billion KRW Last Year, Down 13% YoY

Kolmar Korea announced on the 28th that its operating profit last year decreased by 13.04% compared to the previous year, recording 73.275 billion KRW. During the same period, sales increased by 17.61% to 1.8657 trillion KRW, but net profit turned to a loss of 4.136 billion KRW.

Kolmar Korea explained, "The prolonged COVID-19 pandemic led to a decline in the performance of overseas subsidiaries," adding, "Costs were incurred due to the consolidation of the subsidiary 'Yeonwoo' last year, and one-time fees were also reflected as another subsidiary 'Innoen' started operating its new infusion factory."

Sales in the fourth quarter of last year were 479.1 billion KRW, up 19.08% from the same period the previous year, while operating profit decreased by 66.7% to 8.6 billion KRW.

A Kolmar Korea official stated, "With the lifting of indoor mask mandates in Korea, cosmetic demand is expected to increase," and forecasted an improvement in this year's performance.

Regarding overseas business, the company revealed plans to actively target the North American market by leveraging the 'North America Technology and Sales Center' currently under construction in New Jersey, USA, while also focusing on developing markets in Southeast Asia and the Middle East.

To capture the global market, Kolmar Korea secured a site of approximately 58,895㎡ (17,816 pyeong) in Jeonui-myeon, Sejong City, Chungnam Province, equivalent to the size of eight soccer fields, and plans to complete a cosmetics factory capable of producing 220 million units annually by next year. Once completed, Kolmar Korea's domestic production capacity for basic and color cosmetics will increase to 807 million units annually. In particular, the production capacity for color cosmetics will improve by about 80% compared to the existing capacity.