Cosmax's US bet pays off in record quarter

South Korean cosmetics manufacturer Cosmax posted record revenue and profit this quarter, with its American business notching its first profit after achieving the steepest growth of any region.

The company reported Tuesday that consolidated revenue for the April-June period rose 27 percent from a year earlier to 794.9 billion won ($560.8 million), while operating profit climbed 21 percent to 73.7 billion won. Both are record highs.

For the first half, revenue totaled 1.48 trillion won and operating profit 126.8 billion won, up 22 percent and 13 percent, respectively.

Every regional operation grew, but none more sharply than the US, where revenue jumped 79 percent on-year to 53.8 billion won. The business swung to its first-ever operating profit since its founding in 2013.

The shift followed years of cost-cutting and a sales push targeting small beauty brands, with revenue from customers mostly on the west coast beginning to register this year. Steady reorders from major accounts in the second quarter also solidified the gains, the company said.

Korea remained the company’s largest growth engine, with revenue crossing 500 billion won in a single quarter for the first time while operating profit grew to 56.4 billion won.

Skincare drove broad growth, with suncare and hydrogel masks showing particular gains in profitability as Cosmax refined those lines. Direct export revenue also climbed as the company deepened partnerships with global and European clients.

Elsewhere, China delivered steady growth, with revenue up 33 percent to 197.4 billion won, driven by robust demand among local color cosmetics customers, along with balanced growth across online and export channels.

In Southeast Asia, Indonesia’s unit posted 38 percent revenue growth to 28.9 billion won, thanks to a broader distribution mix, while exports to Malaysia, Singapore and India picked up as well. Thailand grew a more modest 8 percent, lifted by reorders of existing hits and new customers in the company’s brand manufacturing business.

“We were able to hit two milestones at once as every unit grew together, with Korea crossing 500 billion won and the US turning its first profit,” a company official said. “We will carry that momentum into the second half, leaning on skincare strength, K-beauty demand and new customers.”

  • Related Posts

    Alleged prostitution ring in Chuncheon draws nearly 10,000 visits

    Police have uncovered an alleged prostitution ring in Chuncheon, Gangwon Province, that is believed to have recorded nearly 10,000 customer visits over three years and generated more than 500 million…

    Stock rout shakes confidence, not Korea’s fundamentals

    Seoul authorities tighten leveraged-ETF rules; Fitch sees limited spillover to broader economy South Korea’s stock-market turmoil has shaken investor confidence but has yet to spill into the broader economy or…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Byun Yo Han, Roh Jae Won, Jo Woo Jin, Yoon Kyung Ho, And More Dive Into The World Of Gambling In “Tazza 4”

    Byun Yo Han, Roh Jae Won, Jo Woo Jin, Yoon Kyung Ho, And More Dive Into The World Of Gambling In “Tazza 4”

    Lee Dong Wook, Kim Hye Jun, And Squad Enjoy Rare Moments Of Peace In “A Shop For Killers 2”

    Lee Dong Wook, Kim Hye Jun, And Squad Enjoy Rare Moments Of Peace In “A Shop For Killers 2”

    Mother and son die in western Seoul apartment fire

    Mother and son die in western Seoul apartment fire

    S. Korea, US Army chiefs discuss strengthening combined defense posture

    S. Korea, US Army chiefs discuss strengthening combined defense posture

    Teams gear up for fresh starts as baseball season resumes following heat-induced break

    Teams gear up for fresh starts as baseball season resumes following heat-induced break

    Football association to hold presidential election this year with 20,000-strong electorate

    Football association to hold presidential election this year with 20,000-strong electorate