TONYMOLY Reports Operating Profit of 2.6 Billion KRW in 2Q... Second Consecutive Quarter of Profitability

Tonymoly announced on the 14th that its consolidated operating profit for the second quarter of this year reached 2.6 billion KRW, an increase of 189.9% compared to the same period last year. During this period, sales rose by 5.04% to 36.3 billion KRW.

[Photo by Tony Moly]

Compared to the first quarter, which marked a return to consolidated profitability after 13 quarters, sales increased by 16.2% and operating profit soared by 381.5%. The company recorded profits for two consecutive quarters following the first quarter of this year.

Tonymoly attributed this strong performance to increased sales driven by the peak season for cosmetics and improvements in subsidiary performance.

According to Tonymoly, the second quarter of this year saw a rise in foreign visitors to Korea due to seasonal factors as well as holidays such as China’s Labor Day and Japan’s Golden Week, which boosted sales significantly in special commercial districts like Seoul’s Myeongdong and Dongdaemun, as well as in duty-free channels. In the overseas business sector, sales grew by more than 20% year-on-year, mainly in the United States and Hong Kong.

Tonymoly plans to focus on "global market expansion" in the second half of the year. The company has high expectations for Japan, where the K-beauty trend is strong. Having secured a supply contract with Itochu, one of Japan’s top five trading companies, in the first half of the year, Tonymoly is preparing to actively target both online and offline markets in Japan.

Tonymoly’s business diversification strategy has also begun to show signs of performance improvement this year. Its major subsidiary, Megacos, achieved a turnaround to profitability through an increase in new clients and ongoing cost reduction efforts.

A Tonymoly representative said, “In the second half of the year, we are preparing for a full-scale entry into the Japanese offline market, as well as a significant expansion of store openings at Walmart in Mexico and Miniso in the United States. Given the current high popularity of K-beauty overseas, we will continue to expand our presence in more countries so that consumers worldwide can experience Tonymoly’s products.”