Cosmetics indie brand company BBIA announced on the 13th that its cumulative sales for the third quarter of this year reached 40.2 billion KRW, a 47% increase compared to the same period last year. Operating profit for the same period recorded 3.4 billion KRW, marking a 4% increase year-on-year.
Quarterly sales grew by 35% year-on-year to 14.1 billion KRW, while operating profit for the same period was 1 billion KRW and quarterly net profit was 1.7 billion KRW, representing a 60% decrease and a 26% increase respectively compared to the same period last year.
According to a company official, “Both quarterly and cumulative sales are steadily growing, but due to increased advertising expenses from expanding influencer marketing for new brands (EditB, Eglips) and new product development, as well as launching collaboration products, the profit scale showed a decline. However, net profit turned positive in the third quarter after a deficit in the second quarter caused by one-time costs related to a SPAC merger, demonstrating the potential for stable profit realization,” they explained.
They added, “We expect to recover profit margins starting in 2025, when operating leverage effects from external growth will fully materialize.”
The main factors behind the company achieving its highest quarterly sales ever include ▲ increased awareness and strong sales of the base makeup specialized brand ‘Aboutton’ ▲ and sales growth of the Japanese subsidiary.
Aboutton, a base makeup specialized brand, increased customer accessibility by placing its steady seller product, Blur Powder Pact, in over 700 Olive Young stores. As a result, Aboutton’s cumulative sales for the third quarter this year reached 8.2 billion KRW, showing a steep growth of 191% compared to 2.8 billion KRW in the same period last year.
Additionally, the company is actively expanding its market share globally, including Japan, achieving significant external growth. In particular, BBIA Japan, the local subsidiary, held a large pop-up store at Tokyo Etcosme in April, confirming explosive local response to the ‘Loutine’ product. Through various online and offline market strategies such as launching new colors of ‘Loutine,’ the company continues its strong growth. Consequently, cumulative sales to Japan for the third quarter reached 6.1 billion KRW, maintaining a high growth rate of 276% compared to 1.6 billion KRW in the same period last year.
BBIA CEO Park Kwangchun stated, “As the base makeup specialized brand Aboutton steadily grows, the sales proportion, which was previously concentrated on the point makeup specialized brand BBIA, is gradually diversifying, and the sales share in the Japanese market is rising alongside China and Southeast Asia. We will continue to maximize synergy among each brand to expand global market sales, maintain the company’s external growth, and improve profit margins.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
