Cosmax Surpasses 1 Trillion Won in Sales for the First Half of the Year for the First Time

Operating Profit of 92.2 Billion KRW, Up 54% YoY
Growth Driven by Increased Overseas Volume and High Growth of Southeast Asia Subsidiaries

Cosmax achieved 1 trillion KRW in sales from cosmetics original design manufacturing (ODM) in the first half of the year.

According to the Financial Supervisory Service's electronic disclosure system on the 12th, Cosmax recorded sales of 1.0783 trillion KRW in the first half of this year, a 22.2% increase compared to the same period last year. Operating profit rose 54% year-on-year to 93.3 billion KRW.

In the second quarter, sales amounted to 551.5 billion KRW and operating profit to 46.7 billion KRW, up 15.1% and 1.5% respectively compared to the second quarter of last year. This is the highest quarterly sales ever recorded.

Cosmax Thailand Corporation Exterior [Photo by Cosmax]

Exports of domestic small and medium indie brand cosmetics to the US, Japan, and other countries increased, and the rise in foreign visitors to Korea significantly boosted performance. Subsidiaries in Southeast Asia, including Indonesia and Thailand, also recorded high growth.

By region, the Korean subsidiary posted sales of 348.2 billion KRW, up 25.1% year-on-year. Operating profit increased 13.6% to 34.5 billion KRW. For the Korean subsidiary, direct export sales grew nearly 40% due to increased new orders from overseas clients.

Cosmax’s China subsidiaries (Shanghai, Guangzhou, Yisen JV) reported consolidated sales of 147.6 billion KRW, down 4.1% year-on-year. This decline is interpreted as largely due to a 15% drop in cosmetics retail sales in China in June compared to the previous year, reflecting weakened local consumption. Due to decreased sales and profitability, a net loss of 1.1 billion KRW was recorded. The sluggish Chinese market also contributed to a reduction in overall operating profit in the second quarter.

Sales of the US subsidiary decreased slightly by 5.6% to 36 billion KRW. Although sales to major clients remained steady, some second-quarter production was advanced to the first quarter, causing a slight drop in sales. From the third quarter, Cosmax’s US subsidiary plans to strengthen expansion of new clients through its West LA office and accelerate efforts to reduce various costs to achieve quarterly breakeven.

Sales of the Indonesian subsidiary increased 23% year-on-year to 25.4 billion KRW, and the Thai subsidiary’s sales rose 50.8% to 10.3 billion KRW. Sales growth was recorded across all categories, from basic skincare to sun care and color cosmetics. Notably, the Thai subsidiary has consistently achieved operating profits since the previous quarter.

A Cosmax official stated, “We were able to achieve record-high sales through the globalization of K-indie brands, continuous innovative product launches, and expansion of production capacity,” adding, “We will continue to strive to grow together with our clients in the second half of the year.”