[Edaily Reporter Lee Hye-ra] Analysts say that #CosmeccaKorea is raising expectations for growth as its order intake continues to rise following strong first-quarter earnings.

Han Yu-jeong, an analyst at Hanwha Investment & Securities, stated in a report on the 16th, "Following a significant improvement in earnings in the first quarter, the company has raised its annual revenue growth guidance from 15% to over 20% and its operating profit margin guidance from 13% to 13.5%." She added, "Since the current order backlog already exceeds that of the first quarter, it is highly likely that the trend of quarterly growth will continue at least through the third quarter."
Researcher Han projected that both revenue and operating profit for the second quarter would improve compared to the previous quarter. She assessed, "Despite the burden of rising raw material prices, the expansion of export-driven sales volume is driving profitability improvements."
In particular, the analyst noted that the Korean subsidiary is at the center of this growth. This is because Cosmecca Korea is directly benefiting from the continued expansion of overseas exports by domestic cosmetics brands.
One analyst explained, “We are seeing revenue growth across the entire customer base, rather than relying on specific clients,” adding, “Leveraging our ample production capacity (CAPA), we are aggressively securing new customers as brand companies expand their exports.”
Expansion of production capacity was also cited as a growth driver. Following the full-scale launch of its hydrogel mask production line last June, Cosmecca Korea decided in June of this year to acquire land and buildings in Cheongju, North Chungcheong Province, for 64 billion won, moving to secure additional production infrastructure.
One analyst stated, “Proactive investments to expand production capacity are highly likely to lead to structural revenue growth amid the current favorable market conditions.”
By region, the outlook for the Korean business was revised upward. For the U.S. subsidiary, short-term estimates were lowered due to a conservative reflection of orders from specific clients, but the outlook for the second half of the year was maintained.
Hanwha Investment & Securities projected Cosmecca Korea’s consolidated revenue for this year to reach 793 billion won, a 23.7% increase year-over-year, with operating profit rising 27.7% to 107 billion won.
One analyst noted, “This upward revision to the guidance is not merely a reflection of strong first-quarter performance, but a signal that improvements in the customer mix and expanded order volumes are strengthening the company’s annual earnings fundamentals.”