"The Power of K-Skincare": KOLMAR Korea Achieves Record-High Q3 Results

Record-High Third-Quarter Results in Domestic Business Segment
Driven by Strong Export Demand from Skincare Brands
US Subsidiary Sales Down 54%... "Decline in Utilization Rates"

KOLMAR Korea, an original design manufacturer (ODM) specializing in cosmetics, achieved record-breaking results in the third quarter of this year, driven by the growth of K-beauty skincare brands.

According to the Financial Supervisory Service's electronic disclosure system on November 7, KOLMAR Korea's consolidated sales for the third quarter of this year reached 683 billion won, marking a 9% increase compared to the same period last year. Operating profit for the same period was 58.3 billion won, up 7% year-on-year. Net profit for the quarter was 42.4 billion won, representing a 76.6% increase from the previous year. Both sales and operating profit were the highest ever recorded for a third quarter.

The domestic business, which accounts for the largest share of KOLMAR Korea's sales, posted third-quarter sales of 322 billion won and operating profit of 44.3 billion won, growing by 18% and 19% respectively compared to the previous year. Both sales and operating profit reached all-time highs. This performance is attributed to strong export demand from skincare brands. In the third quarter, skincare accounted for 49% of sales, sun care 28% (a slight decrease from the previous year), and makeup 17%. A KOLMAR Korea representative explained, "The emergence of the country's largest sun care brand as our top client, the rapid growth of European-style skincare brands, and the full-scale launch of European-targeted makeup sales by global multinational skincare specialists have all accelerated changes in our client base, which has significantly impacted our results."

The US subsidiary recorded sales of 8.1 billion won and an operating loss of 6.4 billion won. Sales fell by 54% year-on-year, and the operating loss widened compared to the previous year. The combined operating loss for the first and second US plants was 3 billion won. The first US plant, which mainly produces color cosmetics, saw a decline in utilization rates due to reduced orders from its largest client. Meanwhile, as concerns over US tariffs eased, orders from clients considering production at the second plant were postponed. The company stated that it will focus on boosting utilization rates through increased sales activities and will diversify its sales strategy to secure not only ODM but also OEM clients.

The Canadian subsidiary posted sales of 9.2 billion won, a 0.2% increase from the previous year. The operating loss was 1.3 billion won, with the loss margin narrowing compared to last year. The company plans to focus on securing clients that export to regions outside the US and aims to improve profitability.

The Chinese subsidiary recorded sales of 31.8 billion won and an operating loss of 1.6 billion won. Sales declined by 13% year-on-year, and the operating loss was mainly due to the off-season for sun care and an increased proportion of low-margin products, which negatively affected profitability. By category, sun care accounted for 11% of sales, skincare 19%, and makeup 62%. The company plans to focus on securing strategic skincare clients to mitigate the seasonality of sun care and improve profitability.

YEONWOO, a subsidiary specializing in cosmetic containers, was affected by declining sales from major clients such as Amorepacific and LG Household & Health Care, despite an increase in sales to domestic indie brands. Sales amounted to 61.8 billion won, with an operating loss of 200 million won. Sales decreased by 15% year-on-year, resulting in a shift to an operating loss. The pharmaceutical affiliate HK Inno.N posted sales of 260.8 billion won and operating profit of 25.9 billion won, up 14% and 16% respectively from the previous year.

This content was produced with the assistance of AI translation services.