Cosmecca Korea continued its revenue growth in the third quarter of this year, driven by the expansion of the domestic cosmetics manufacturing sector. Notably, the Korean subsidiary surpassed 200 billion won in quarterly revenue for the first time in its history, fueled by increased demand for skincare products.
On November 6, Cosmecca Korea announced that its consolidated revenue for the third quarter reached 247.5 billion won, with an operating profit of 27.2 billion won. These figures represent increases of 35.7% and 0.1%, respectively, compared to the same period last year. The net profit for the quarter was reported at 10.4 billion won.
For the first three quarters of the year, the cumulative consolidated revenue amounted to 658.8 billion won, marking a 42.4% increase year-on-year. This figure has already surpassed the company's annual revenue target of 640.9 billion won. During the same period, cumulative operating profit rose by 29.9% to 81.2 billion won.
The growth in performance was primarily driven by the Korean subsidiary, which reported third-quarter revenue of 201.1 billion won, a 54.9% increase from the previous year. Operating profit for this segment increased by 61.3% to 23.4 billion won. Skincare product sales alone surged by 92% year-on-year, accounting for 80% of the Korean subsidiary's total revenue. Additionally, sales of sun care and color cosmetics rose by 26.8% and 12.6%, respectively, during the same period.
In terms of international operations, the U.S. subsidiary, Englewood Lab, recorded revenue of 45.7 billion won and an operating profit of 5.2 billion won, with an operating profit margin of 11.3%. Meanwhile, Cosmecca China reported revenue of 9.6 billion won, a 17.9% increase year-on-year, but incurred an operating loss of 1 billion won.
To meet the growing production demands of its K-beauty clients, Cosmecca Korea is pursuing innovations in its production infrastructure. The company plans to diversify its supply chain for raw materials both domestically and internationally to enhance supply stability, while gradually implementing AI-based process automation, including advanced smart factory technologies and unmanned production line testing.
The Ochang factory, for which investments were decided in June, is set to begin the installation of manufacturing and production lines in January 2027, with plans to commence operations in the second half of that year. Full-scale operations are expected to begin in 2028, contributing to increased production capacity, improved efficiency, and enhanced profitability and responsiveness to delivery timelines.
A representative from Cosmecca Korea stated, "We aim to respond stably to customer demand through expanded production capacity and AX·DX production innovations, and we are committed to achieving our goal of 1 trillion won in consolidated revenue by 2027."
Additionally, Cosmecca Korea has introduced the ISO 37002 standard for internal reporting management systems, becoming the first in the country to do so. This system will be integrated with existing anti-corruption (ISO 37001) and compliance management (ISO 37301) systems, as well as the voluntary compliance program (CP), with plans for regular training and promotion of reporting channels.
* This article has been translated by AI.
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