Cosmax announced that its consolidated operating profit for the third quarter of this year reached 83.3 billion won, a 95% increase compared to the same period last year. Sales during the same period rose 50% to 875.8 billion won, marking the highest quarterly revenue in the company's history.
The Korean subsidiary's Q3 sales increased by 61% year-on-year to 616.1 billion won. This figure represents a 19% increase from the previous quarter, surpassing 600 billion won in quarterly sales for the first time. The rise in orders was attributed to clients expanding their marketing on major online channels and entering overseas markets.
In the basic product category, the growth of major clients accelerated compared to the first half of the year. Demand for existing products remained strong, and inquiries for new dermatological cosmetics increased. The color cosmetics segment also recorded double-digit growth, driven by new product launches. Orders for high-margin products such as essences and mists contributed to the Korean subsidiary's operating profit, which totaled 67.7 billion won, a 97% increase from the previous year.
The Chinese subsidiary reported consolidated sales of 177 billion won, a 27% increase year-on-year. The Guangzhou subsidiary diversified its client base by developing sun care products and skincare for children and infants, amid growth from top clients.
The U.S. subsidiary's sales reached 69.5 billion won, an 88% increase compared to the same period last year. The company noted an increase in development requests across the skincare sector, including creams, essences, masks, and sun care products. Collaboration with the Korean headquarters shortened development times, leading to quicker revenue recognition. Following its first profitable quarter in Q2, the U.S. subsidiary achieved operating profit in Q3 as well.
The Indonesian subsidiary's sales increased by 34% year-on-year to 28.8 billion won. Major clients continued to promote existing popular products and launch new ones, contributing to a recovery trend. The company anticipates a gradual increase in export proportions as connections with clients in neighboring countries like India and Malaysia grow.
The Thai subsidiary reported sales of 16.2 billion won, a 7% increase from the previous year. Growth from top clients and the influx of new clients from neighboring countries continued. The number of new clients requesting basic products such as skincare, creams, sun care, and cleansing has also increased, contributing to the revenue from the manufacturer brand development and production (OBM) business in collaboration with major distribution channels.
A Cosmax representative stated, "The rapid growth of the Korean subsidiary, along with the simultaneous growth of our global subsidiaries, has led to record quarterly sales even in the off-peak third quarter. We will further solidify our position as the global leader in cosmetics ODM based on our research and development and production capabilities."
Cosmax operates a total of 10 R&I centers in South Korea, China, the United States, Italy, Indonesia, and Thailand, investing 5% of its annual revenue in research and development.
* This article has been translated by AI.
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