KOLMAR KOREA Reports Q1 Operating Profit of 12.1 Billion KRW, Down 6.58% YoY (Comprehensive)

Sales of 487.7 Billion KRW... Increased by 18.8%
But Reflected 'Loss' Due to Yeonwoo Performance... Raw Material Prices Up

Kolmar Korea announced on the 12th that its consolidated operating profit for the first quarter of this year was 12.1 billion KRW, a 6.6% decrease compared to the same period last year. During the same period, sales increased by 18.8% to 487.7 billion KRW, but net profit fell by 54.6% to 6.5 billion KRW.

KOLMAR Korea Comprehensive Technology Institute, Seocho-gu, Seoul. [Photo by KOLMAR Korea]

A Kolmar Korea representative stated, "Sales of sun care (sunscreen) products and derma brand products performed well, and sales of key products such as K-CAB and hangover relief products from our subsidiary Innoen increased, driving overall sales growth. However, operating profit and net profit declined due to poor performance of our subsidiary Yeonwoo and rising raw material costs caused by inflation. Increased financial expenses due to rising exchange rates and interest rates also had an impact."

The decline in Kolmar Korea's profitability was largely due to increased cost of goods sold and selling and administrative expenses. The surge in demand for sun care products led to significant increases in raw materials, logistics and service costs, and commission fees, which reduced operating profit. The rise in selling and administrative expenses, including commission fees, also affected profitability.

The poor performance of the consolidated subsidiary Yeonwoo also worsened Kolmar Korea's profitability. Yeonwoo, a cosmetics container company, supplies products to over 400 clients domestically and internationally. In the first quarter of this year, sales decreased by 25% compared to a year ago due to reduced sales not only in Korea but also in China, the United States, and other regions, resulting in an operating loss and a return to deficit.

Kolmar Korea plans to actively respond to the demand for sun care products both domestically and internationally this year. Kolmar Korea's market share in the domestic sun care product market reached approximately 70% in the first quarter of this year.