KOLMAR Korea's Q1 Operating Profit Jumps 170%... "Thank You Sun Cream"

Q1 Operating Profit 32.4 Billion KRW, Up 170% YoY

Korea Kolmar recorded an operating profit of 32.4 billion KRW in the first quarter, showing a triple-digit growth rate compared to the same period last year. This was thanks to the increased launch of sun care products by indie brands.

According to Korea Kolmar on the 10th, the company recorded an operating profit of 32.4 billion KRW in the first quarter, a 170% increase compared to the same period last year. This was slightly below the market's forecasted operating profit of 36.8 billion KRW. Sales increased by 18% to 574.8 billion KRW, and net profit grew by 86.8% to 12.1 billion KRW.

Looking at each business division, strong performances from the domestic divisions Korea Kolmar and its subsidiary HK Innoen drove the increase in results. The sales proportions of these two business divisions are each around 40%.

Korea Kolmar (domestic division) recorded sales of 247.8 billion KRW and an operating profit of 22.8 billion KRW, increasing by 22.8% and 68.4% respectively compared to the same period last year. A Korea Kolmar official said, "This is the highest performance ever for the first quarter, with increased orders from export-specialized indie brands," adding, "After March, orders for sun products have begun in earnest, and an additional 30% production is expected in the first half of the year." Korea Kolmar expects a significant expansion in production capacity with the expansion of Sejong Plant 1 CAPA and the completion of repair work at Sejong Plant 2 in the second half of the year.

Subsidiary HK Innoen recorded sales of 212.6 billion KRW and an operating profit of 17.3 billion KRW, growing by 15% and 206% respectively during the same period. This was due to increased sales volume of the prescription drug (ETC) K-CAB. The Chinese Wuxi corporation also showed favorable growth rates in both sales and operating profit. Sales increased by 5% to 34.6 billion KRW, and operating profit rose by 212% to 1.8 billion KRW. Securing 10 new customers in the first quarter and the expansion of product lineups by major customers with large sales proportions were positive factors.

Subsidiary Yeonwoo recorded sales of 67.2 billion KRW last year, a 33% growth compared to the first quarter of last year. Operating profit was break-even at 0 KRW, reducing the deficit. Yeonwoo's domestic and overseas sales growth rates were 23% and 44%, respectively. The strong performance in the overseas division is attributed to the influence of US indie brands. The company expects that orders from indie brands in the US market will continue, leading to a significant increase in US-centered sales in the second quarter as well.

The US corporation recorded sales of 7 billion KRW and an operating loss of 2.5 billion KRW. Sales increased by 7%, but the deficit continued. The Canadian corporation recorded sales of 9 billion KRW, a 25% decrease during the same period, and an operating loss of 2.1 billion KRW. A Korea Kolmar official explained, "The performance was affected by a shortage of packaging materials from the US ODM (Original Design Manufacturer) customer," and "In Canada, there was a portfolio restructuring of global brands in the first quarter."