Global cosmetics ODM leader COSMAX reported mixed third-quarter results, with strong top-line growth tempered by declining profitability. The company announced preliminary consolidated sales of 585.6 billion won, up 10.5% year over year, while operating profit slipped 1.6% to 42.7 billion won. Net profit dropped 48.3% to 10.7 billion won.
By region, domestic sales rose 10.3% to 383.5 billion won, supported by robust demand in hydrogel mask packs and sun care products, particularly sun serums, which drove an 80% surge in sun care sales. However, domestic operating profit declined 13% to 34.3 billion won, as an influx of new indie brand clients temporarily increased initial service expenses.
In China, consolidated sales jumped 22% to 140 billion won, driven by a recovery in the Shanghai cosmetics market and broad-based growth among major brands. The Guangzhou entity also saw gains from expanding its offline channel client base.
In the United States, revenue rose 13.6% to 36.9 billion won, reflecting new client acquisitions from late last year and rebounds from major existing customers. A more balanced product mix between basic and color cosmetics also helped narrow losses. Thailand continued to show momentum, with sales up 36.1% to 15.2 billion won, boosted by the launch of its own-brand manufacturing (OBM) business in the second half. In contrast, Indonesia posted a 33.4% sales decline to 21.5 billion won, as weakening domestic demand and intensified price competition weighed on results.
Looking ahead, COSMAX expects year-end demand to rise with major shopping events such as China’s Singles Day and the U.S. Black Friday. The company plans to strengthen its year-end product lineup and production readiness.
A COSMAX representative commented, “A recovery has been confirmed in key markets such as China and the United States thanks to stronger product competitiveness and an expanded client base. We will further solidify our position as the No. 1 global ODM through enhanced competitiveness in high value-added products like sun care and region-specific strategies.”
