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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Aekyung Industrial Co. reported consolidated fourth-quarter revenue of KRW 162.9 billion, down 4.8% year-on-year, the company said on the 26th. The company also posted an operating loss of KRW 3.4 billion, swinging to a deficit from a year earlier.
For full-year 2024 on a consolidated basis, revenue totaled KRW 654.5 billion, while operating profit came in at KRW 21.1 billion, representing declines of 3.6% and 54.8%, respectively, compared with the previous year.
An Aekyung Industrial official attributed the weaker performance to sluggish results in China and a slowdown in domestic consumer demand.
By business segment, the cosmetics division recorded cumulative fourth-quarter revenue of KRW 215.0 billion and operating profit of KRW 7.5 billion, down 17.8% and 74.1% year-on-year, respectively.
The company said cosmetics performance was adversely affected by business restructuring in China. However, it is seeking growth opportunities in other global markets by implementing brand strategies tailored to local consumer preferences and market conditions.
In Japan, Aekyung Industrial expanded distribution channels, including Costco, while launching new products under its AGE20’S and LUNA brands that reflect local consumer tastes.
In the United States, the company strengthened its localized product strategy by expanding shade options for key products—such as the AGE20’S Essence Pact and LUNA Long Lasting Tip Concealer—from six to 20 shades. It also launched its new skincare brand, signiq, on TikTok Shop following its debut on Amazon, further enhancing its presence in U.S. digital commerce channels.
Meanwhile, the household goods division posted cumulative fourth-quarter revenue of KRW 428.5 billion, up 3.9% year-on-year, but operating profit declined 23.3% to KRW 13.6 billion.
The household goods business focused on expanding global markets and strengthening digital and high-growth channels. Localization strategies were pursued by brand and region, including Shower Mate in North America and Europe, Kerasys in China, Central Asia, and South America, and LovScent in Japan, alongside efforts to broaden distribution networks and enhance the brand portfolio.
However, continued weakness in domestic consumer demand and increased spending on sales and marketing weighed on profitability, the company said.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
