In the fourth quarter (Q4) of 2021, the company reported sales growth of 19% year-on-year to reach KRW 421.2 billion ($324 million). Operating profit jumped 190% to KRW 30.4 billion ($24.7 million).
Overall, its consolidated sales in 2021 increased by 15% to KRW 1.59 billion ($1.29 billion) while operating profit recorded an 84% increase to 122.6 billion KRW ($99.4 million).
“In 2021, Cosmax reaffirmed its competitiveness by achieving record sales and operating profit in difficult market conditions”,said Lee Kyung-soo, chairman of Cosmax, in a statement.
“We continued to grow organically and built strong win-win partnerships with our customers by developing market-leading products and actively responding to online customers.”
In China, the company’s second-largest market, realized sales increased 38% to KRW 182.8 billion (US$148.2 million), breaking a quarterly record attributed to the ‘excellent performance’ from its Shanghai office.
In SEA, sales increased 47% to KRW 15.3 billion ($12.4 million) in the fourth quarter. This was driven by a 153% increase in sales in Indonesia.
This performance is due in part to its strategic partnership with Unilever as well as the growth of online direct-to-consumer brands.
Tremendous business growth in Indonesia helped offset a 29% decline in Thailand, which suffered from production delays due to global supply chain issues.
Its domestic market, Korea, which accounts for more than half of the business, also grew at a sustained pace thanks to the good performance of major customers, as well as key cosmetic categories such as essences, creams, blushes eyelids and foundations.
However, in the United States, Cosmax saw its performance decline by 32% to KRW 30.8 billion ($25 million) due to the high sales base of hand sanitizers in 4Q20.
“While the macro environment has always acted as a headwind for our U.S. business, we have developed strategic plans to lay the foundation for success in the years to come,” said Lee.
The company celebrates its 30th anniversaryandanniversary this year and has aligned its plans to achieve its target of KRW3tn (U$2.5bn) in sales in 2022.
In beauty and personal care, Cosmax sees opportunities in personalized cosmetics and is about to unveil a smart factory that will be equipped to meet personalized beauty demands.
Cosmax is also targeting the rapidly growing pet care market with grooming products as well as food.