Expanding Global Markets
Strengthening Digital Marketing
Aekyung Industrial reported a 23.6% year-on-year decline in operating profit for the third quarter of this year, citing the impact of slowing consumer demand in China.
According to the Financial Supervisory Service's electronic disclosure system on November 4, Aekyung Industrial announced that its operating profit for the third quarter reached 7.3 billion won, a decrease from 9.5 billion won in the same period last year. Revenue increased by 2.4% year-on-year to 169.3 billion won, while net profit dropped by 61% to 4.3 billion won. The company attributed the decline to continued sluggishness in its cosmetics business segment, primarily due to weakened consumer demand in China.
By business segment, the cosmetics division posted third-quarter revenue of 51.5 billion won and operating profit of 2.1 billion won, representing declines of 9.7% and 45.8% year-on-year, respectively. Although performance in China remained weak due to sluggish domestic consumption, the company plans to drive a sales recovery through the launch of new products such as AGE20'S "Super Ectoin Prime Foundation Pact" and by strengthening sales and marketing efforts centered on the TikTok channel.
In the United States, the company expanded AGE20'S color shade range to 20 options and drove sales growth by enhancing content-driven communication. Aekyung Industrial intends to continue expanding its market presence by strengthening its core brand competitiveness and launching a new skincare brand, signiq.
In Russia and the United Kingdom, the company is working to expand both online and offline distribution for its LUNA brand. In Japan, it is pursuing a localized marketing strategy that includes new product launch events and collaborations with beauty influencers. Domestically, brands such as LUNA, twoedit, and .solution have shown solid growth in major offline channels such as H&B stores and Daiso.
The household goods business segment recorded third-quarter revenue of 114.6 billion won, up 7.1% year-on-year, while operating profit declined 5.8% to 5.4 billion won. The company maintained revenue growth through continuous new product launches and category expansion in key domestic and overseas channels, but operating profit declined due to rising raw material costs and other factors.
In Korea, strong sales continued in personal care products at major offline growth channels such as H&B stores and Daiso. Overseas, flagship brands such as Kerasys and Showermate have begun to see tangible results in new markets including the Americas and Europe. The company is also ramping up efforts to target overseas markets with premium personal care brands such as LOVSCENT, BLACKFORET, and BYCOLOR.
Going forward, Aekyung Industrial plans to establish strategies to strengthen profitability based on premium products and to enhance responsiveness to growth channel platforms, thereby laying the foundation for mid- to long-term growth. A company representative stated, "The impact of sluggish consumer demand in China has persisted," adding, "We will enhance our competitiveness in each market by responding to changing consumer environments and market trends both domestically and internationally."
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