J2K Bio’s Q3 operating profit rises 109%; revenue grows 58.9%

[Financial News] J2K Bio, a cosmetics bio-materials company, said on the 11th that it recorded consolidated revenue of KRW 13.61 billion and operating profit of KRW 2,600,001,000 in the third quarter of this year. The figures were up 58.9% and 108.9%, respectively, from the same period last year. As its customer base diversified, particularly through indie brands, and sales of high-value-added cosmetic ingredients such as PDRN and peptides expanded, the company achieved both revenue growth and improved profitability.
The operating margin for the third quarter was 19.2%. As operating profit growth outpaced revenue growth, the margin rose 4.6 percentage points from a year earlier and 1.9 percentage points from the previous quarter.
Consolidated revenue for the first three quarters of this year totaled KRW 40.34 billion, up 65.6% from the same period last year. Revenue through the third quarter alone exceeded last year’s full-year total of KRW 32.97 billion by 22.4%. Cumulative operating profit over the same period rose 216.9% to KRW 7.22 billion, about 2.5 times last year’s full-year operating profit of KRW 2.92 billion.
Growth was driven by a more diversified customer base, particularly among indie brands. In the first half of this year, sales to customers other than the company’s two major clients rose 88% year on year. The number of customers that actually placed orders reached 345, surpassing the 333 for all of last year. The company said, “As domestic cosmetics brands expand overseas sales, production at original design manufacturing (ODM) companies is increasing, creating more opportunities to supply raw materials.”
Increased sales of high-value-added bio-materials also contributed to the results. In the first half, sales of bio-materials such as PDRN and peptides reached KRW 11.1 billion, up 81% from the same period last year. That was equivalent to about 126% of last year’s full-year sales of KRW 8.8 billion.
J2K Bio provides data on ingredient efficacy evaluations conducted at its in-house skin clinical center and participates in product development with its clients. It has secured examples of EGF peptides and caviar PDRN being used in branded products, and is expanding the supply of customized materials for individual clients based on more than 1,000 proprietary strains and 11 types of microorganism-derived PDRN.
A J2K Bio official said, “When we develop new products with a client and an ingredient is selected, that creates an opportunity to propose other materials for follow-up products,” adding, “We plan to secure new clients while also expanding the range of ingredients we supply to existing clients.”
[email protected] Choi Doo-seon Reporter