Cosmetics materials specialist NFC(265740) posted record half-year results.
NFC said on the 12th that first-half sales came to 49 billion won and operating profit to 9 billion won. Sales rose 74.7% from a year earlier, and operating profit nearly doubled. On a half-year basis, both sales and operating profit are at all-time highs.
Quarterly results also kept rising. Second-quarter sales and operating profit each increased more than 20% from the first quarter, making the improvement trend clear.
The core business driving earnings growth is the original design manufacturing (ODM) institutional sector. NFC's ODM sales showed growth close to 100% from a year earlier.
NFC counts as key clients beauty brands making strides in the global market, including Equalberry, Cellimax, Dr.Althea, and Beauty of Joseon. As various products applying NFC's materials technology—such as serums, toners, and cleansing balms—gain attention as hit items on Amazon, the company said the synergy between clients and NFC is becoming visible.
The materials business also returned to a recovery path. Backed by rising demand for high-functionality ingredients, sales of key products, including high-content natural ceramides, are on an upward trend.
In particular, lactic acid bacteria PDRN, drawing attention as a next-generation bio material, is emerging as a new growth driver. According to NFC, a North American global brand is set to launch products applying this material in the second half, and related inquiries are continuing in the global market.
The well-known U.S. brand that signed a nondisclosure agreement (NDA) last year is said to be positively reviewing not only the launch of products applying lactic acid bacteria PDRN but also the potential application of various active ingredients held by NFC.
In the second half, existing clients are set to expand sales channels and roll out major new products. The company expects the influx of new clients to add to this, keeping earnings growth centered on the ODM business.