Kolmar Korea announced that its second-quarter results exceeded market expectations, driven by strong demand for UV protection products both domestically and internationally. The company reported record-high sales and operating profit, with consolidated operating profit reaching 71.7 billion won ($52.56 million), a 27.4% increase from the same period last year. Sales rose by 10% to 660.3 billion won, and net profit increased by 5.9% to 45.2 billion won. These results surpassed the securities industry’s projections for sales and significantly exceeded expectations for operating profit.
Domestically, Kolmar Korea’s sales increased by 17% year-on-year to 297 billion won, while operating profit surged by 28% to 44.2 billion won. This growth was primarily fueled by increased demand for sunscreen products during the summer, with Kolmar Korea holding over 75% of the market share in South Korea. The growing popularity of domestic sunscreen products in overseas markets also contributed to the strong performance, with demand rising across the Americas, Asia, Europe, Russia, and the Middle East.
The company faced challenges in China, where its Wuxi subsidiary saw a 7% decline in sales to 52.7 billion won and a 27% drop in operating profit to 6.7 billion won. Despite these setbacks, Kolmar Korea’s focus on profitability-centered management helped maintain its operating profit margin at 13%. Notably, the demand for sunscreen products in China led to a 51% increase in customers compared to the previous year.
In the U.S., Kolmar Korea’s subsidiary achieved a 61% increase in sales to 13.4 billion won and reduced its operating loss to 1.3 billion won. Improved factory utilization, driven by renewed product lines for major U.S. clients, contributed to these results. Despite increased R&D costs, the subsidiary narrowed its losses and surpassed the monthly breakeven point in production, aiming to maintain profitability in the second half of the year.
Kolmar Korea’s subsidiary Yonwoo, specializing in cosmetic containers, reported a 17% increase in sales to 74 billion won, with steady operating profit at 1.2 billion won. Yonwoo’s growth was fueled by increased transactions with small and indie brands. Meanwhile, HK inno.N, a biohealth subsidiary, achieved a 7% rise in sales to 219.3 billion won and a 59% increase in operating profit to 24.3 billion won.
