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[Apha Biz=(Chicago) Reporter Paul Lee] COSMAX achieved record-high earnings in the second quarter of this year on a consolidated basis due to strong domestic market and increased exports to Japan.
Cosmax announced on the 10th that its consolidated operating profit for the second quarter of this year was KRW 46 billion, up 167.3% from a year earlier. During the same period, sales rose 18.3 percent to 479.3 billion won and net profit jumped 414.4 percent to 27.4 billion won.
Cosmax's operating profit and sales in the second quarter are both the highest ever at 9.6%.
In the case of the Korean subsidiary, sales grew as the domestic market was strong due to the opening effect in the second quarter and exports to Japan increased. The basic and color categories showed overall even growth.
Sales of Cosmax Korea increased 23.4% year-on-year to 278.3 billion won. Operating profit rose 63.3 percent on-year to 30.4 billion won on the back of leverage effects from high sales growth.
Cosmax's Chinese subsidiary was sluggish as the Chinese economy continued to slow down and the 618 shopping festival was sluggish compared to previous years. Retail sales growth in the Chinese cosmetics market also grew only 13.8% year-on-year, despite the base effect.
Consolidated sales in China rose 12% on-year to 153.8 billion won and net profit rose 1% to 10.9 billion won on the level of market growth.
The US subsidiary of Cosmax grew 0.2% year-on-year to 38.1 billion won in consolidated sales. Net loss was KRW 10.5 billion, down 31.3% from the same period last year.
Cosmax maximizes profits by expanding ODM volume to 75% in the US market centered on OEM. We plan to further expand our new indie brand customers through the opening of sales offices in the western region this year.
The Indonesian subsidiary of Cosmax grew 40.7% year-on-year to 20.7 billion won in sales. Net profit jumped 574.8 percent to 1.4 billion won.
Sales of the Thai subsidiary of Cosmax grew 101% year-on-year to 6.8 billion won. Net loss was KRW 500 million, down 77%.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
