Yesterday (August 12), Cosmax released its financial report for the second quarter and the first half of 2024, ending on March 31.
The report shows that in the second quarter of this year, Cosmax achieved sales of 551.5 billion KRW ($402.3 million), a year-on-year increase of 15.1%. Operating profit was 46.7 billion KRW ($34.1 million), up 1.5% year-on-year, and net profit was 35.3 billion KRW ($25.8 million), up 29% year-on-year.
In the first half of the year, Cosmax’s sales reached 1.0783 trillion KRW ($786.6 million), surpassing 1 trillion KRW, representing a year-on-year growth of 22.2%, setting a quarterly record. Cosmax stated that even in the global cosmetics manufacturing industry, achieving half-year sales of 1 trillion KRW is an unprecedented achievement.
Specifically, Cosmax’s sales performance in various regions during the second quarter saw mixed results. South Korea remains Cosmax’s primary market, with sales reaching 348.2 billion KRW (254 million), a year-on-year increase of 25%. Cosmax noted that South Korea’s overall growth in the second quarter was driven by strong exports and stable domestic sales. Additionally, as last year’s base normalized, the U.S. saw a single-digit decline in revenue.
The Eastern market, primarily China, is Cosmax’s second-largest market, with sales of 147.6 billion KRW ($107.7 million) in the second quarter, a year-on-year decrease of 4.1%. Cosmax noted that in China, a decline in consumer sentiment, mainly reflected in online channels, led to negative revenue growth. In particular, Cosmax’s sales in the Shanghai region fell by 12.8% year-on-year. Cosmax attributed this to weak consumer sentiment, a slowdown in online channels, increased labor costs, and bad debt expenses. In contrast, sales in the Guangzhou region increased by 23.8% year-on-year, with the group noting that the Yatsen e-commerce brand grew by more than 50%, though overall profit margins declined.
The sales of the U.S. subsidiary amounted to 36 billion KRW ($26.3 million), down slightly by 5.6%. Sales from major customers remained stable, but some of the second-quarter volume was produced at the beginning of the first quarter. From the third quarter onward, Cosmax’s U.S. subsidiary plans to strengthen new customer expansion through its Los Angeles West office while accelerating quarterly breakeven through various cost reduction efforts.
The Indonesian subsidiary’s sales grew by 23% year-on-year to 25.4 billion KRW ($18.5 million), while the Thai subsidiary’s sales grew by 50.8% year-on-year to 10.3 billion KRW ($7.5 million). Both companies experienced rapid growth from local customers, with sales increasing across all categories, from basic products to sunscreen and cosmetics. Notably, the Thai subsidiary has steadily achieved operational surplus since the previous quarter.
