Record-High Second Quarter Results in Domestic Business Segment
Continued Growth in Sun Care and Makeup Categories
U.S. Subsidiary Sales Up 37% Year-on-Year
According to the Financial Supervisory Service's electronic disclosure system on August 8, sales for the second quarter of this year reached KRW 730.8 billion, up 10.7% year-on-year. Operating profit increased by 2.4% to KRW 73.4 billion, while net profit for the period declined by 7.4% to KRW 41.8 billion. Both sales and operating profit marked the highest figures ever recorded for a second quarter.
Sales from Kolmar Korea's domestic business, which accounts for the largest portion of total sales, reached KRW 328.1 billion, and operating profit was KRW 49 billion, both up 11% year-on-year. Both sales and operating profit for the domestic business hit all-time highs, continuing a solid growth trend. The main driver behind these results was the "sun care" product category. In the second quarter, sun care accounted for 33% of sales, up 6 percentage points from the previous quarter.
The color cosmetics (makeup) segment also achieved strong growth, increasing by 45% year-on-year. A Kolmar Korea representative stated, "The strong performance of major popular sun care brands continued, and the contribution to sales from health and beauty (H&B) stores, private brands (PB), luxury skincare indie brands, and global brands has expanded." The representative added, "Typically, sun cream sells well in the first and second quarters, but given the current trend, demand is expected to extend into the third quarter."
The U.S. subsidiary recorded sales of KRW 18.4 billion and an operating loss of KRW 200 million. Sales increased by 37% year-on-year, while the operating loss narrowed compared to the previous year. The first U.S. plant, which mainly produces color cosmetics, secured orders from K-beauty and global brands that are increasing local production due to concerns over U.S. tariff policies. The second U.S. plant began operations in June, leading to higher costs, and as orders from the largest U.S. client fell short of expectations, a slight loss was recorded. The company expects a full recovery in performance to begin next year.
The Canadian subsidiary posted sales of KRW 10 billion, down 21% year-on-year. Operating profit turned positive at KRW 300 million. While major clients underperformed, profitability improved through cost control. The company plans to focus on securing new orders in the second half of the year. However, tariff negotiations between the U.S. and Canada remain a variable.
The Chinese subsidiary reported sales of KRW 49.9 billion and operating profit of KRW 6.1 billion, down 5% and 8% year-on-year, respectively. Performance weakened slightly as major customer orders during the peak season fell short of expectations. By category, sales composition was sun care (28%), skincare (17%), and makeup (50%). The company expects a full recovery in growth from the third quarter, driven by increased orders for color cosmetics from local Chinese brands.
Yonwoo, the subsidiary specializing in cosmetic packaging, was affected by deteriorating performance from major clients such as Amorepacific and LG Household & Health Care. Sales reached KRW 70.7 billion, and operating profit was KRW 800 million, down 5% and 38% year-on-year, respectively. The pharmaceutical subsidiary HK Innoen recorded sales of KRW 263.1 billion and operating profit of KRW 19.5 billion. Sales increased by 20%, but operating profit declined by 20%.
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