TONYMOLY, Q1 Operating Profit of 500 Million KRW... Turned Profitable After 13 Quarters

Tonymoly announced on the 15th that it succeeded in turning a consolidated profit for the first time in 13 quarters due to improved performance in the first quarter of this year.

Tonymoly's consolidated sales for the first quarter of this year amounted to 31.2 billion KRW, a 7.2% increase compared to the same period last year, with an operating profit of 500 million KRW. On a separate basis, sales reached 24.5 billion KRW, up 18.5% year-on-year, and operating profit rose 307.1% to 1.4 billion KRW, maintaining a profit trend for two consecutive quarters.

A Tonymoly representative explained, "This achievement is attributed to the effects of management efficiency and structural improvements that we have been striving for," adding, "We restructured our business model from a road shop-centered structure to a digital and global-centered one due to COVID-19, and focused on changing the sales structure and improving profitability through diversification of distribution channels such as e-commerce, H&B, and home shopping. As a result, the digital and global sectors have grown to account for more than 50% of total sales."

Thanks to strong sales of recently launched new products, sales grew 18.5% year-on-year, achieving not only profitability improvement but also external growth. In January this year, Tonymoly launched 'Get It Tint Waterful Butter,' developed jointly with 200,000 beauty creators, which sold out its initial stock within 10 minutes of launch and ranked first in sales at Olive Young.

As the number of foreign tourists has recently increased again, revitalizing special commercial districts such as Myeongdong and Hongdae, Tonymoly reopened three stores in Myeongdong and plans to open one additional new store this month.

Tonymoly plans to continue focusing on digital and global businesses this year. In February, Tonymoly simultaneously entered 1,500 offline stores and an online mall of the U.S. retailer Target, and signed a mid- to long-term supply contract with Itochu, one of Japan's top five trading companies, showing active movements overseas and expanding its position as a global brand. Starting with the first initial order this month, from next month onward, Tonymoly products will be introduced through various online and offline channels in Japan, including major variety shops, drugstores, and online shopping malls such as Rakuten and Amazon.