Annual Sales Reach 2.1661 Trillion KRW, Up 21.9% Year-on-Year
High Growth Both Domestically and Overseas
Joint Growth with Domestic Indie Brands
Global cosmetics original design manufacturing (ODM) company Cosmax has surpassed annual sales of 2 trillion KRW. This was driven not only by joint growth with domestic indie brand clients but also by rapid growth in overseas subsidiaries, including those in Southeast Asia.
According to the Financial Supervisory Service's electronic disclosure system on the 24th, Cosmax's consolidated sales last year reached 2.1661 trillion KRW, up 21.9% from the previous year. Operating profit for the same period grew 51.6% to 175.4 billion KRW.
Cosmax Korea surpassed 1 trillion KRW in sales in 2023 and continued its high growth last year. This was due to the strong performance of domestic indie brand clients in the global market. Sales increased 28.4% year-on-year to 1.3577 trillion KRW. Operating profit rose 59.8% to 138.7 billion KRW. Both domestic demand and export volumes significantly increased, resulting in double-digit growth. The expansion of orders from top clients, along with the addition of rapidly growing small-scale clients, enhanced the stability of the business structure.
By product type, skincare and color cosmetics each accounted for half of the sales. Within detailed categories, there was a balanced distribution without concentration in specific types, ranging from color cosmetics such as foundation, lip products, and powder to skincare products including essences, creams, and sun care.
The China subsidiary began to rebound from negative growth despite a slowdown in cosmetics consumption within China. Sales increased 4.9% year-on-year to 574.3 billion KRW. The company diversified its client base, which had mainly been concentrated in online channels, to include offline and region-based brands, achieving sales growth. The Isen joint venture factory, which began operations in the second half of 2023, has also stabilized, increasing its contribution to sales.
The growth of subsidiaries in Southeast Asia, including Indonesia and Thailand, outpaced that of the domestic subsidiary. Cosmax Indonesia's sales rose 31.9% year-on-year to 113.2 billion KRW, surpassing 100 billion KRW for the first time since its establishment in 2011. Particularly, the increased proportion of skincare products such as essences, sun care, and cleansing water locally contributed to profit generation. The Thailand subsidiary's sales surged 70.4% year-on-year to 43.5 billion KRW. As the Thai cosmetics market grew, top-tier clients expanded, contributing to sales growth.
Meanwhile, the U.S. subsidiary's sales declined 2% year-on-year to 137.1 billion KRW. Cosmax stated that since the end of last year, new client inflows through its sales office in California have been continuous, and it expects full-scale sales growth this year.
This year, Cosmax plans to accelerate growth not only in the domestic market with indie brands leading K-Beauty but also in overseas exports. It has established region-specific systems and strategies for strategic items such as creams, sun care, foundation, and lip products. In particular, sun care products are expected to grow sales by more than 50%, reflecting the preferences of the MZ generation consumers. Production of sunscreen products is projected to increase more than threefold compared to the previous year, and more than four times as many clients as last year plan to collaborate with Cosmax to enter the sunscreen market.
For the Korean subsidiary, it plans to respond to the increased orders from indie brands by expanding production lines within factories and to continue mutual growth by strengthening support according to each client type. The rapidly growing Southeast Asian subsidiaries will actively utilize the advantages of halal-certified factories and further increase export proportions to neighboring countries such as Malaysia, Cambodia, and Vietnam, expanding their sales networks within Southeast Asia.
Cosmax is promoting the 'LOCO Project' to secure clients in emerging markets such as India, Latin America, and Africa. The plan is to supply products that maintain core functions tailored to local consumer demand while securing a diverse pool of raw materials and components worldwide, acting as a locomotive leading the local markets.
A Cosmax official explained, "Thanks to the growth of indie brands and the strong export performance of K-Beauty last year, we surpassed 2 trillion KRW in cosmetics ODM sales. We will solidify our position as the world's number one cosmetics ODM company by discovering potential clients and segmenting clients by region."
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