Cosmecca Korea said in a filing on May 8 that its operating profit in the first quarter was 21.9 billion won, up 78% from a year earlier on a provisional basis. Revenue for the same period rose 56.4% to 185.1 billion won. Net profit increased 112.8% to 19.6 billion won.
The diversification of the customer portfolio, improved product mix, and production efficiency combined to drive earnings growth. In particular, the steady growth of the Korea subsidiary and the U.S. subsidiary Englewood Lab played a leading role.
First-quarter revenue at the Korea subsidiary was 142.2 billion won, up 91.3% from a year earlier. Diversified orders from K-beauty indie brand clients and expanded global exports led to revenue growth. Skincare revenue rose 106.5% from a year earlier, and revenue in the suncare category also increased 173.6%.
First-quarter revenue at U.S. subsidiary Englewood Lab was 49.7 billion won, up 16.9% from a year earlier. Skincare product revenue rose 25.3%, underpinning the growth trend, and measures such as dual production in Korea and the United States by K-beauty brands in response to the tariff issue also contributed to revenue growth.
However, first-quarter revenue at the China subsidiary Cosmecca China fell 27.1% from a year earlier to 6.4 billion won. The company said some revenue was deferred due to delays in sourcing key raw materials and changes in some subsidiary-material suppliers.
In the fourth quarter of last year, the Korea, U.S., and China subsidiaries all posted top-line growth. Revenue at the Korea subsidiary in the previous quarter was 127.3 billion won, up 53.8% from a year earlier. During the same period, the U.S. subsidiary's revenue rose 29.2% to 54.5 billion won, and the China subsidiary's revenue increased 3.8% to 8.5 billion won.
A Cosmecca Korea official said, "We plan to pursue both top-line growth and profitability improvement in the second half," adding, "Based on our capability in new formulation development, speed of product proposals, agility in production shifts, and quality competitiveness, we will expand collaboration with global clients and respond to overseas growth demand from K-beauty brands."