Cosmax, a leading cosmetics original design manufacturer (ODM), achieved record revenue and operating profit in the second quarter of this year. All subsidiaries in South Korea, China, the United States, and Southeast Asia experienced growth, with the U.S. subsidiary reporting its first-ever profit.
On August 11, Cosmax announced that its consolidated revenue for Q2 reached 794.9 billion won, a 27% increase compared to the same period last year. Operating profit rose by 21% to 73.7 billion won, marking the highest figures for both revenue and operating profit in a single quarter. The operating profit margin stood at 9.3%.
For the first half of the year, cumulative revenue totaled 1.4769 trillion won, up 22% from the same period last year, while operating profit increased by 13% to 126.8 billion won.
The growth was primarily driven by the South Korean subsidiary, which reported Q2 revenue of 518.4 billion won, a 23% increase year-on-year, surpassing the 500 billion won mark for the first time in a quarter. Operating profit also grew by 13% to 56.4 billion won.
The increase in orders was influenced by domestic indie brand clients expanding their sales regions beyond the U.S. to Europe. Steady demand for skincare products, along with improved profitability in sun care and gel masks, contributed to the profit growth. Direct exports to global and European clients also increased.
Among overseas subsidiaries, the U.S. showed significant improvement. The U.S. subsidiary's Q2 revenue reached 53.8 billion won, a 79% increase from the previous year, and it successfully turned a profit for the first time since its establishment.
In recent years, Cosmax has focused on reducing fixed costs and improving management efficiency in its U.S. operations while securing new clients, particularly among indie brands in the western region. In Q2, orders from new clients in the western region were reflected in sales, along with reorders from existing major clients.
In Q2 of last year, the U.S. subsidiary's revenue was only 30 billion won, a 17% decline year-on-year. At that time, the company anticipated that revenue from new clients secured in the California western sales network would be reflected in the second half of the year, and the subsequent expansion of its client base has led to actual growth and profitability.
China also showed signs of recovery. The revenue of the Chinese subsidiary reached 197.4 billion won, a 33% increase compared to the same period last year. The Shanghai subsidiary benefited from increased orders from local color cosmetics brands, with base makeup products like cushions and foundations, as well as blushers and lip products driving growth. The Guangzhou subsidiary also saw revenue growth, primarily through online and export channels.
The Southeast Asian subsidiary also expanded its footprint. The Indonesian subsidiary reported revenue of 28.9 billion won, a 38% increase year-on-year. The recovery of existing clients in modern trade channels such as convenience stores and supermarkets, along with increased orders from new clients in general trade channels, contributed to this growth. Exports to neighboring countries like Malaysia, Singapore, and India also increased.
The Thai subsidiary recorded an 8% increase in revenue to 24.9 billion won, driven by reorders of hit products from major clients. The company is also expanding its supply of new brands in its original brand manufacturing (OBM) business, which includes brand planning and development.
A Cosmax representative stated, “In the second half of the year, we will further solidify our position as the global leader in cosmetics ODM, based on strong skincare demand, expanding global K-beauty demand, and the establishment of new clients.”
* This article has been translated by AI.
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