The cosmetics original design manufacturer (ODM) COSMAX(192820), buoyed by the global popularity of K-beauty, posted record quarterly results in the second quarter of this year. The Korea unit's quarterly revenue topped 500 billion won for the first time, and the U.S. unit turned a profit for the first time since its founding.
COSMAX said on Aug. 11 that operating profit in the second quarter rose 21.3% from a year earlier to 73.7 billion won. Revenue for the period increased 27.5% to 794.9 billion won. Both revenue and operating profit were the highest ever on a quarterly basis. Net profit climbed 129% to 50 billion won.
Cumulative first-half revenue was 1.4769 trillion won, up 21.8% from a year earlier, and operating profit increased 13% to 126.8 billion won.
Domestic operations led the earnings growth. The Korea unit's second-quarter revenue was 518.4 billion won, up 23% from a year earlier. It was the first time quarterly revenue exceeded 500 billion won. Operating profit rose 13% to 56.4 billion won.
The increase stemmed from higher orders for export products as K-beauty indie brand clients expanded their push into overseas markets. Growth continued, led by basic skincare, and strong sales of sun care and masks also boosted results.
Overseas operations also showed growth. The U.S. unit's second-quarter revenue rose 79% from a year earlier to 53.8 billion won, and it posted a quarterly operating profit for the first time since its founding. Expense reductions, expansion of sales networks among indie brands on the U.S. West Coast, and increased reorders from major clients improved profitability.
Revenue at the China unit increased 33% to 197.4 billion won. The Shanghai unit saw higher sales of base makeup and blushes on the back of growth among local color cosmetics clients. The Guangzhou unit's diversification of sales channels, including online and exports, drove growth.
The Southeast Asia unit also grew. Revenue at the Indonesia unit was 28.9 billion won, up 38% from a year earlier. The Thailand unit, supported by reorders from major clients and increased production volume, posted revenue of 24.9 billion won, up 8%.
A COSMAX official said, "In the second half, we will further solidify our position as the No. 1 global cosmetics ODM, based on strong skincare, expanding global demand for K-beauty, and the onboarding of new clients."