Korean cosmetics company Kolmar reported significant growth in both sales and operating profit for its domestic subsidiary in the third quarter, driven by the expansion of its cosmetics business.
On November 6, Kolmar announced that its consolidated operating profit for the third quarter reached 81.9 billion won, a 40.5% increase compared to the same period last year. Sales rose by 21.3% to 828.2 billion won, marking the highest quarterly figure to date. Net profit for the period increased by 22% to 51.7 billion won.
The improvement in performance was led by the domestic cosmetics sector. The standalone sales of Kolmar's domestic subsidiary in the third quarter rose by 34.7% to 433.7 billion won, while operating profit surged by 42% to 62.9 billion won.
In terms of product sales distribution, skincare accounted for the largest share at 48%, followed by sun care at 32% and makeup at 15%. The top 10 customers contributed to 57% of total sales.
In contrast, the overseas subsidiaries continued to struggle. The companies in China and Canada reported increased losses, while the U.S. subsidiary saw significant sales growth but continued to incur operating losses.
The Chinese subsidiary's sales fell by 4.5% year-on-year to 30.4 billion won, with an operating loss of 4.4 billion won. This decline was attributed to weaker-than-expected orders from major color cosmetics clients, leading to higher fixed costs. The Canadian subsidiary's sales decreased by 12% to 8.1 billion won, with an operating loss of 1.6 billion won.
Meanwhile, the U.S. subsidiary's sales surged by 122% to 18 billion won, but it still faced an operating loss of 3.8 billion won.
Yunwoo, a subsidiary that manufactures cosmetic containers, improved its performance thanks to the growing demand for K-beauty products. In the third quarter, Yunwoo's sales increased by 35.1% year-on-year to 83.5 billion won, and it returned to profitability with an operating profit of 3 billion won.
Kolmar anticipates that the growth trend in its domestic cosmetics business will continue into the fourth quarter. The company is operating its major domestic production lines at maximum capacity and has secured production volumes through the end of the year. It plans to focus on increasing production capacity in anticipation of rising demand in the first quarter of next year.
* This article has been translated by AI.
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