Cosmetics Business Achieves Highest Quarterly Performance Since 2020
Household Goods Profit Declines Due to Increased Cost Burden
Aekyung Industrial announced on the 31st that its consolidated operating profit for the second quarter of this year was tentatively estimated at 17.5 billion KRW, a 5.4% increase compared to the same period last year.
During the same period, sales increased by 7.1% to 173.6 billion KRW, and net profit grew by 6.8% to 12.9 billion KRW. For the first half of the year, sales rose 7.4% year-on-year to 342.7 billion KRW, and operating profit increased 6.1% to 33.9 billion KRW.
Aekyung Industrial explained that the cosmetics business segment led the second quarter performance with balanced growth domestically and internationally. The cosmetics segment’s sales in the second quarter increased 19.5% year-on-year to 73.1 billion KRW, and operating profit rose 29.1% to 12.5 billion KRW. Both sales and operating profit in the cosmetics segment achieved double-digit growth, marking the highest quarterly performance since 2020.
Aekyung Industrial stated that efforts to diversify the profit structure in the cosmetics segment have shown results. The cosmetics segment strengthened its business competitiveness in global markets, focusing on non-China countries. In particular, sales in Japan grew fourfold compared to the same period last year through market-tailored strategies.
Efforts to acquire new customers in global markets outside Japan also continued. In April, the company signed a business agreement with Silicon2 to introduce AGE20’S to the U.S. market, and in China, it launched the premium line 'Spotlight' to expand its target customer base.
Domestically, strong performance was recorded through strengthened distribution channel operations and expanded product categories. The Health & Beauty (H&B) channel enhanced competitiveness with new product launches, and digital channels such as the company’s own mall and home shopping channels also showed growth.
However, the household goods business saw a decline in profit due to increased costs from intensified competition in domestic digital channels and brand investments. The household goods segment’s sales in the second quarter decreased 0.4% year-on-year to 100.6 billion KRW, and operating profit dropped 27.7% to 5.0 billion KRW.
The household goods business strengthened its global growth centered on personal care. It showed growth in strategic countries such as China and the U.S., and sales in the Asian region increased through network expansion. However, profitability declined due to increased cost burdens. In the second quarter, cost burdens rose due to marketing investments to enhance brand awareness and intensified competition in domestic digital channels.
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