Kolmar Korea posts Q3 operating profit of 81.9 billion won, reports record quarterly revenue

[Financial News] Kolmar Korea posted record quarterly results, driven by growth in sun care and skincare sales.
Kolmar Korea said on the 6th that preliminary consolidated results showed revenue of 828.2 billion won for the third quarter of this year, up 21.3% from the same period last year. Operating profit rose 40.5% to 81.9 billion won, while net profit increased 22% to 51.7 billion won. These were the company’s best-ever results for a third quarter.
Year-to-date consolidated revenue and operating profit rose 17% and 41.4%, respectively, from the same period last year, to 2.4175 trillion won and 271.2 billion won.
A Kolmar Korea official said, “The sun care and skincare product categories both grew steadily, new products from global clients continued to launch, and improved results at our cosmetics-container manufacturing subsidiary YONWOO also contributed.”
The domestic subsidiary led the company’s results, posting its highest-ever revenue and profitability. Its revenue and operating profit came to 433.7 billion won and 62.9 billion won, respectively, up 35% and 42% from the same period last year. The domestic subsidiary’s operating margin reached 14.5%. Skincare accounted for the largest share of revenue at 48%, followed by sun care at 32% and makeup at 15%. The top 10 clients accounted for 57%.
Kolmar Korea expects its domestic subsidiary to post its highest revenue growth rate in the fourth quarter. It is also focusing on securing additional production capacity to meet rising demand in the first quarter of next year.
Overseas subsidiaries, by contrast, continue to post losses. In China, revenue fell 5% year on year to 30.4 billion won, and the subsidiary remained in the red with an operating loss of 4.4 billion won. The shares of sun care and skincare increased, but orders from makeup clients fell short of expectations, adding to the fixed-cost burden. Revenue is expected to rise in the fourth quarter as the number of new clients grows.
In the U.S., revenue rose 122% year on year to 18 billion won, while the subsidiary posted an operating loss of 3.8 billion won. The share of its largest client declined, while volumes from global color cosmetics brands increased. In Canada, revenue fell 12.1% to 8.1 billion won, and the subsidiary posted an operating loss of 1.6 billion won.
YONWOO’s revenue rose 35% year on year to 83.5 billion won, and it turned profitable, posting operating profit of 3 billion won.
[email protected] Kang Myeong-yeon Reporter