COSMAX set a new quarterly sales record, driven by solid growth in its Korea business and improved results at its U.S. and China subsidiaries.
COSMAX said first-quarter sales rose 15.9% on-year to 682 billion won. Operating profit for the same period increased 3.3% to 53 billion won, and net profit jumped 312.1% to 43.8 billion won.
First-quarter sales at the Korea subsidiary rose 17% on-year to 423.2 billion won. With steady demand for K-skincare in global markets, key export products for clients—such as suncare, gel masks, and mists—underpinned growth. Direct exports to overseas clients also increased by more than 30%, helping to expand the business portfolio.
Overseas, the growth of the China and U.S. subsidiaries stood out. Sales at the China subsidiary climbed 20% on-year to 194.7 billion won, marking a quarterly record. In China, demand from emerging brand clients that are increasing new product launches helped drive results.
The U.S. subsidiary also widened its growth. Sales at the U.S. subsidiary rose 46% on-year to 42 billion won. The share of local indie brand clients increased, boosting both new product orders and reorders of existing products.
The U.S. subsidiary is also continuing to see results from efficiency initiatives pursued so far. Based on the first-quarter trend of improved results, COSMAX expects the U.S. subsidiary to reach a quarterly break-even point in the first half.
The Southeast Asia subsidiary showed mixed trends by country. Despite a high base in the year-earlier period, sales at the Thailand subsidiary rose 2% to 24.3 billion won. In contrast, sales at the Indonesia subsidiary fell 23% to 22.7 billion won, weighed by political uncertainty and weaker consumer sentiment. The company plans to pursue a recovery at the Indonesia subsidiary by diversifying its client base and expanding exports to surrounding markets such as India.
A COSMAX official said, "As demand for K-beauty expands in global markets, the Korea, China, and U.S. subsidiaries grew evenly and delivered meaningful results," adding, "We will continue to strengthen synergies among global subsidiaries and step up our push into emerging markets to steadily enhance the competitiveness of the world's No. 1 cosmetics ODM company."