Korea's top beauty makers log record Q2 earnings
Kolmar Korea led the sector in revenue, crossing the 700 billion won ($503 million) mark for the first time. Sales rose 10.7 percent to 730.8 billion won, while operating profit edged up 2.4 percent to a record 73.5 billion won.
The domestic cosmetics unit posted all-time highs, with revenue of 328.1 billion won and operating profit of 49 billion won, each up 11 percent from a year earlier.
Sunscreen products, which made up 33 percent of cosmetics sales, and color cosmetics, up 45 percent on-year, were the main growth drivers, the company explained.
In overseas markets, US sales rose 37 percent, though the unit posted a modest 200 million won loss. Chinese sales saw a slight decline due to weaker seasonal orders, while Canada returned to profit with 300 million won in earnings despite a drop in sales.
On a similar trajectory, Cosmax topped the 600 billion won quarterly sales mark for the first time, with revenue up 13.1 percent on-year to 623.6 billion won. Operating profit rose 30.2 percent to a record 60.8 billion won.
Domestic operations led the gains, with sales up 20.8 percent to 420.5 billion won and operating profit jumping 44.6 percent to 49.9 billion won. Much of the growth came from smaller-brand clients expanding into global markets, along with strong demand for mask packs and sun care products.
Overseas results were mixed. China remained the largest market at 148.6 billion won in sales, though growth was flat amid a weak retail backdrop, while Thailand delivered the sharpest gain with revenue surging 124.1 percent. The US unit posted sales that fell from a year earlier but rebounded from the prior quarter.
Both manufacturing powerhouses plan to carry their growth into the second half in the US by boosting responsiveness to local clients through their own production plants.
'In the US, we plan to lift profitability by serving new local brand clients,' a Cosmax official said.
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