iFamilySC Rises 70% This Year Led by Strong Earnings
Rapid Launch of Trend-Reflecting Cosmetics
Operating Profit Expected to Surpass 10 Billion KRW in Q1
Shares of iFamilySC, which saw a sharp increase in operating profit last year, hit a new high since its listing. Thanks to the popularity of color cosmetics brands such as 'Rom&nd,' launched in 2016, as well as 'And By Rom&nd' and 'Nude,' in Japan, Southeast Asia, and other regions, profits have surged significantly. With expectations that the growth trend will continue this year, the stock price is on an upward trajectory.
According to the Korea Exchange on the 29th, iFamilySC's stock price has risen 71.8% this year. During the same period, the KOSDAQ index increased by just over 5%.
iFamilySC started in 2000 as a wedding service company called 'iWedding.' In 2016, it launched Rom&nd and began primarily selling color cosmetics such as lip tints and eyeshadows. Last year, it recorded sales of 148.7 billion KRW and an operating profit of 24 billion KRW. Compared to the previous year, sales increased by 74%, and operating profit grew by 152%. The cosmetics division continues to grow with overseas sales of 94.9 billion KRW and domestic sales of 49.3 billion KRW. The sales composition by business segment is 97% cosmetics and 3% iWedding and others.
The largest shareholder is CEO Kim Tae-wook, who holds a 27.38% stake. Based on the closing price the day before, Kim's shareholding is valued at 106.4 billion KRW.
Park Eun-jung, a researcher at Hana Securities, explained, "The birth of popular products, global demand expansion, and entry into new channels have combined to sustain remarkable growth."
As digital content rapidly spreads worldwide, communication between consumers and companies through social networking service (SNS) platforms has become possible. Understanding the rapidly changing trends in the color cosmetics industry is considered a strength of iFamilySC. The company targets the so-called 'codeok' (cosmetics enthusiasts) consumer group as its core customers and releases trend-aligned products relatively quickly. Through SNS's communication functions and encouragement of participation, it has created a corporate culture that accurately grasps consumer needs.
iFamilySC has moved away from the conventional cosmetics development method of product development followed by design and marketing, introducing new concepts such as 'design thinking' and 'content conduct.' This is a work system that can quickly adapt to diverse consumer demands and trend changes. This is one of the reasons for its popularity in overseas markets. As content spreads and brand awareness rises, exports to Southeast Asia, the Americas, and Europe are increasing.
Researcher Park estimated that iFamilySC would achieve sales of 48.5 billion KRW and an operating profit of 10 billion KRW in the first quarter of this year, representing increases of 48% and 114%, respectively, compared to last year.
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