Cosmax, a leading South Korean cosmetics manufacturer, reported a 15% year-over-year increase in consolidated sales for the second quarter of 2024, reaching 551.5 billion KRW (approximately $414 million USD). This growth was primarily driven by robust performance in the Korean and Southeast Asian markets, with Korean sales increasing by 25% and Indonesian sales up by 23%.
Despite the overall positive results, the company faced challenges in several regions. In China, a drop in consumer sentiment led to a 4% decline in sales. This was exacerbated by increased labor costs and bad debt expenses, particularly impacting the Shanghai market. The U.S. market also saw a single-digit revenue decline as the effects of the previous year’s base normalized.
Cosmax’s operating profit rose slightly to 46.7 billion KRW (approximately $35 million USD), a modest 2% increase from the previous year. The company maintained a stable cost ratio but faced higher operating expenses due to rising labor costs and bad debt provisions in key markets. Net profit, however, surged by 29% to 35.3 billion KRW (approximately $26.5 million USD), boosted by non-operating income and foreign exchange gains.
Looking ahead, Cosmax aims to capitalize on its strengths in skincare and makeup, while addressing the challenges in its international markets to sustain growth.
