CTK Turns to Provisional Operating Profit in Q2 This Year

Global beauty platform company CTK has significantly improved its profitability, successfully turning a profit.

Exterior view of CTK company. CTK

According to the Financial Supervisory Service's electronic disclosure system (DART) on August 10, CTK’s consolidated sales for the second quarter of this year provisionally totaled KRW 28.96 billion, with operating profit reaching KRW 47 million. Sales increased by 28.9% compared to the same period last year, while operating profit soared by 103.4% during the same period.

This growth was driven by the expansion of the company’s original design manufacturing (ODM) business in response to rising global demand for K-beauty, the increase in logistics fulfillment volume in North America, and the effect of incorporating the U.S. OTC manufacturing subsidiary COL. Additionally, CTK achieved a turnaround in quarterly operating profit, thanks to both revenue growth and cost efficiency improvements.

For the second half of this year, CTK plans to continue its performance improvement, focusing on further growth of its core ODM business, stabilization of its North American fulfillment operations, and improved operation rates at the U.S. OTC manufacturing subsidiary COL.

Jung Inyong, CEO of CTK, stated, "In the second quarter of this year, we achieved a turnaround in operating profit along with sales growth, making this a time when the results of improving our business fundamentals became visible."

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