A stone monument at the entrance of Kolmar Korea's Sejong factory bears the inscription "Ubo Cheonri," meaning that an ox walks slowly but will ultimately travel 1,000 ri (about 400 kilometers). [Hong Seok-hee]
A stone monument at the entrance of Kolmar Korea's Sejong factory bears the inscription "Ubo Cheonri," meaning that an ox walks slowly but will ultimately travel 1,000 ri (about 400 kilometers). [Hong Seok-hee]

Operating profit rises 50.2% to 110.3 billion won on improved margins

Indie brand overseas expansion, suncare peak season drive order growth

First-half sales reach 1.59 trillion won; net profit more than doubles

Kolmar Korea, included in the large business group category for the first time this year, posted a record quarterly performance in the second quarter, driven by strong K-beauty exports and growth in its domestic cosmetics original development manufacturing business. A surge in skincare and suncare product orders — fueled by the overseas expansion of indie brands and the seasonal peak for sun protection products — powered the results.

Kolmar Korea disclosed Wednesday that its consolidated second-quarter sales reached 861.3 billion won ($609 million), up 17.9 percent from 730.8 billion won a year earlier. Operating profit rose 50.2 percent to 110.3 billion won from 73.5 billion won, while net profit for the period climbed 68.9 percent to 70.6 billion won from 41.8 billion won.

A notable feature of the results was that operating profit grew faster than sales, signaling improved profitability. The second-quarter operating margin came to approximately 12.8 percent, up about 2.7 percentage points from roughly 10.1 percent a year earlier. The results reflected both top-line growth and margin expansion.

The growth momentum carried through the first half of the year. First-half sales reached 1.59 trillion won, up 14.8 percent from the same period last year. Operating profit rose 41.8 percent to 189.2 billion won, while net profit for the period surged 100.9 percent to 130.6 billion won, roughly doubling year on year.

The strong performance was largely attributed to the buoyant domestic cosmetics ODM business. As local indie brands expanded their sales channels in overseas markets including North America, production volumes at ODM suppliers serving those brands grew in tandem. The second quarter's status as the seasonal peak for suncare products such as sunscreen also contributed to the increase in orders.

The broader K-beauty market has been shifting from large established brands toward indie brands as the export base widens, creating a favorable environment for ODM companies. When indie brands — which focus on product planning and marketing rather than in-house manufacturing — expand their overseas sales, ODM firms that handle research, development and production benefit directly.

Kolmar Korea has been meeting rising demand by drawing on its research, development and production capabilities in skincare and suncare. The company said suncare products are among the categories in which Korean cosmetics firms have earned recognition overseas, and that both seasonal demand and new product launches by global customers were reflected in the quarterly results.

"Orders increased, centered on skincare and suncare products, thanks to the global expansion of indie brands and the peak suncare season," a Kolmar Korea official said. "Continued new product launches by global customers also contributed to our best-ever quarterly performance."


hong@heraldcorp.com