Aekyung Industrial Q2 Operating Profit Down 36.1% YoY... "Cosmetics Business Sees Base Effect"

Second Quarter Sales Reach 171.3 Billion KRW, Down 1.3% Year-on-Year
"Impact of Base Effect from Last Year's High Growth in Cosmetics Business"
Performance Improves Compared to First Quarter Thanks to Recovery in China

Aekyung Industrial announced on July 31 that its consolidated operating profit for the second quarter of this year was provisionally tallied at 11.2 billion KRW, a decrease of 36.1% compared to the same period last year. During the same period, sales amounted to 171.3 billion KRW, down 1.3% year-on-year.

For the first half of this year, operating profit decreased by 49.3% to 17.2 billion KRW, and sales were recorded at 322.4 billion KRW, down 5.9% compared to the same period last year.

However, Aekyung Industrial explained that as the performance of its cosmetics business in China began to recover from its lowest point in the first quarter, sales improved by 13.4% and operating profit by 84.6% compared to the first quarter.

In the second quarter, the cosmetics business recorded sales of 62.5 billion KRW and operating profit of 6.8 billion KRW, representing decreases of 14.4% and 45.7%, respectively, compared to the same period last year. The company explained that despite a base effect caused by high growth in the cosmetics business in the second quarter of last year, it is securing growth momentum by strengthening its marketing strategy.

Aekyung Industrial is enhancing its competitiveness in the cosmetics sector in global markets such as China and Japan. In China, sales grew through Wanghong and live broadcasts on the TikTok channel, while in the United States, marketing activities were carried out on the Amazon channel. In Japan, the company continued to raise brand awareness through the offline store entry of LUNA and the expansion of SKU (number of product launches).

In the second quarter, the household goods business recorded an operating profit of 4.1 billion KRW, down 16.7%, and sales of 105.1 billion KRW, up 5.9%. The company explained that although sales increased due to stable performance in major domestic and overseas channels, operating profit decreased due to increased investment in brand and marketing.

Domestically, key digital channels such as Coupang and Naver showed a recovery in growth. Overseas, strong sales were seen in China, particularly for the Kerasys Propolis line. The company stated that global performance continues to grow through the discovery of new countries and channels in major regions including the Americas, Europe, and Asia.