COSMAX announced on the 24th that its consolidated operating profit for the previous year was 175.4 billion won, a 51.61% increase from the previous year.
During the same period, sales revenue increased by 21.86% to 2.1661 trillion won. Net income for the period rose by 133.91% to 88.4 billion won.
A company official said, "Sales increased due to the overall recovery in domestic and international consumption, improving the profit and loss structure."
COSMAX's Korean subsidiary broke the 1 trillion won sales mark for the first time in 2023 and continued its high growth last year. Sales totaled 1.3577 trillion won, a 28.4% increase from the previous year, while operating profit totaled 138.7 billion won, a 59.8% increase.
Domestic indie brand customers performed well in the global market, leading to significant growth in both domestic consumption and export volumes, achieving double-digit growth. The expansion of orders from major customers, along with the addition of rapidly growing small customers, enhanced the stability of the business structure.
The share by product type recorded a ratio of 50:50 between basic and color cosmetics. Each type also showed a balanced distribution, with no specific type concentrated, from color cosmetics like foundation, lip products, and powder to basic products like essence, cream types, and sun care.
COSMAX's Chinese subsidiary began to recover from a downturn in cosmetic consumption in China, recording sales of 574.3 billion won, a 4.9% increase from the previous year. The company diversified its customer base, which was mainly concentrated in online channels, to include offline and region-based brands, achieving sales growth.
Additionally, the ISEN joint venture factory that began operations in the second half of 2023 has entered a stable orbit, contributing to sales growth.
In terms of growth, subsidiaries in Southeast Asia, such as Indonesia and Thailand, outpaced the domestic subsidiary. COSMAX Indonesia recorded sales of 113.2 billion won, a 31.9% increase from the previous year, surpassing 100 billion won for the first time since its establishment in 2011. Notably, the increased proportion of basic products such as essences, sun products, and cleansing water contributed to profit generation.
COSMAX's Thai subsidiary reported sales of 43.5 billion won, a 70.4% surge from the previous year. The growth in Thailand's cosmetics market has contributed to this expansion as major customers scaled up their operations.
Sales for the U.S. subsidiary totaled 137.1 billion won, a 2% decrease from the previous year. The company expects significant sales growth this year, following the influx of new customers via its California sales office since late last year.
This year, COSMAX plans to lead the K-beauty market by accelerating growth in the domestic market, as well as exports. The company has developed tailored systems and strategies for its strategic items, including creams, sun care, foundation, and lip products.
In particular, the company expects more than 50% sales growth for sun care products, reflecting the preferences of MZ generation consumers. The production of sunscreen products is expected to increase more than threefold compared to the previous year, and over four times as many customers are planning to collaborate with COSMAX to enter the sunscreen market.
The Korean subsidiary plans to respond to the expanded order volume from indie brands through production line expansions, while strengthening support tailored to each customer type to continue mutually beneficial growth. The rapidly growing Southeast Asian subsidiary plans to leverage the benefits of its halal-certified factory to increase the proportion of exports to neighboring countries such as Malaysia, Cambodia, and Vietnam, thereby expanding its sales network in Southeast Asia.
Additionally, the company is promoting the "LOCO Project" to secure customers in emerging markets such as India, Latin America, and Africa. The plan is to supply products that maintain core functions according to local consumer demand while securing a diverse pool of raw materials and sub-materials from around the world to lead the local market.
A COSMAX representative noted, "Thanks to the growth of indie brands and favorable exports of K-beauty last year, we have surpassed 2 trillion won in cosmetics ODM sales," and added, "We will not only seek out potential customers but also segment customers by region to solidify our position as the world's number one cosmetics ODM company."