Cosmax 3Q operating profit up 97% to 67.7 billion won... Growth at home and abroad

[Financial News] Cosmax posted growth at all of its domestic and overseas subsidiaries, achieving record-high revenue.
Cosmax disclosed on the 11th that its preliminary consolidated revenue for the third quarter was 875.8 billion won, up 50% from a year earlier. Operating profit for the same period rose 95% to 83.3 billion won.
The Korean subsidiary led the growth. Its third-quarter revenue rose 61% year over year to 616.1 billion won. Up 19% from the previous quarter, it reached quarterly revenue of 600 billion won. Operating profit at the Korean subsidiary increased 97% to 67.7 billion won. The increase came as orders rose for higher-margin product categories such as essences and mists, while sales of basic skincare products at major clients grew sharply. Color cosmetics also posted double-digit growth, helped by new product launches.
Consolidated revenue at the Chinese subsidiaries rose 27% year over year to 177 billion won. At the Shanghai subsidiary, popular color cosmetics clients in China and across Asia increased their orders, while skincare brands also contributed to strong growth by launching new products. At the Guangzhou subsidiary, top clients are growing and the client base is diversifying.
Revenue at the U.S. subsidiary rose 88% year over year to 69.5 billion won. Client orders are increasing, as are requests to develop skincare products. After posting its first-ever profit in the previous quarter, it remained profitable in the third quarter.
Revenue at the Indonesian subsidiary rose 34% to 28.8 billion won. Exports are also increasing as major clients grow. Revenue at the Thai subsidiary rose 7% to 16.2 billion won. The number of new clients requesting basic products such as skincare, creams, sun care and cleansing products, as well as the number of development projects, is also growing.
A Cosmax representative said, “Strong growth at our Korean subsidiary, together with growth across our global subsidiaries, helped us set another record for quarterly revenue even in the seasonally slow third quarter.” The representative added, “Building on our industry-leading competitiveness, including our production capabilities, we will further strengthen our position as the world’s No. 1 cosmetics ODM (original development manufacturing) company.”
[email protected] Kang Myeong-yeon Reporter