Sun Care Export Demand Continues
Sales Also Grow by 21.3%
Kolmar Korea recorded its highest-ever operating profit for the third quarter, driven by strong exports of sun care products.
Kolmar Korea announced on the 8th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 54.54 billion KRW, a 75.7% increase compared to the same period last year.
During the same period, sales increased by 21.3% to 626.55 billion KRW, and net profit rose by 19.7% to 23.642 billion KRW.
A Kolmar Korea representative explained the third-quarter results, saying, "Sun care products continued to perform well following the second quarter, and the increase in export orders for indie brands contributed to growth in both sales and operating profit."
Looking at the third-quarter results by business segment, Kolmar Korea’s standalone sales, excluding subsidiaries, reached 273.6 billion KRW, and operating profit was 37.3 billion KRW. Compared to the same period last year, sales increased by 47%, and operating profit surged by 185%. Both sales, operating profit, and operating profit margin (OPM) for the third quarter are the highest ever recorded for Kolmar Korea.
The driving force behind Kolmar Korea’s third-quarter performance was sun care products. The season for sun care products extended into the third quarter due to increased export demand. Thirty percent of third-quarter sales came from the sun care category, which is similar to the 30% recorded in the second quarter.
However, Kolmar Korea’s Chinese subsidiary, Wuxi Kolmar, was affected by China’s economic slowdown and decreased demand for cosmetics. Wuxi Kolmar’s third-quarter sales increased by 2% year-on-year to 36.6 billion KRW, but operating profit dropped by 40% to 1 billion KRW. The operating profit margin was recorded at 3%.
Another subsidiary, Yeonwoo, posted sales of 72.8 billion KRW and an operating profit of 1.2 billion KRW. Compared to the same period last year, sales increased by 19%, but operating profit decreased by 27%. Yeonwoo’s sales growth was driven by increased orders for export-focused sun care brands.
In the U.S. market, sales reached 17.5 billion KRW, marking a 55% growth compared to the same period last year, but it recorded a loss of 3.4 billion KRW. This was due to a 4 billion KRW provision for inventory impairment. In the Canadian market, sales declined by 13% year-on-year to 9.2 billion KRW due to poor performance by major customers. Operating losses amounted to 1.8 billion KRW.
Kolmar Korea’s pharmaceutical subsidiary, HK Innoen, recorded sales of 229.5 billion KRW and an operating profit of 22.2 billion KRW in the third quarter. Sales increased by 7% year-on-year, but operating profit decreased by 1%. This was attributed to a temporary reduction in domestic shipments caused by the replacement of production facilities for its flagship product, the gastroesophageal reflux disease treatment K-CAB.
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