[Edaily Reporter KIM EUNG-TAE ] Global cosmetics Original Design Manufacturer (ODM) companies KOLMAR KOREA(161890)and COSMAX, INC.(192820)are expected to set new records for their best-ever quarterly earnings in the second quarter of this year. This is due to the combination of expanding global exports—as the industry enters its peak season when demand for suncare products traditionally rises—and the positive impact of a strong exchange rate. On a consolidated basis, KOLMAR KOREA is expected to surpass 800 billion won for the first time in a second quarter, setting a new industry record for quarterly revenue, while on a standalone basis—which reflects only the cosmetics business—COSMAX, INC. is expected to maintain its position as the industry leader.

According to financial information provider FnGuide Inc. on the 14th, the consensus estimate (average market forecast) for KOLMAR KOREA’s second-quarter revenue on a consolidated basis stood at 824.7 billion won, a 4.8% increase from the forecast three months ago (787.1 billion won). The operating profit forecast for the same period was revised upward by 14.3%, from 83.0 billion won to 94.9 billion won.
On a consolidated basis, the revenue consensus for COSMAX, INC.’s second quarter of this year stands at 738.5 billion won, a 3.4% increase from the forecast three months ago (714.0 billion won). The operating profit forecast rose by 1.6%, from 68.4 billion won to 69.5 billion won.
KOLMAR KOREA and COSMAX, INC. are expected to set new records for their best-ever quarterly performance in the second quarter, following their first-quarter results. Previously, KOLMAR KOREA posted its best-ever quarterly results in the first quarter of this year, with revenue of 728 billion won and operating profit of 78.9 billion won. COSMAX, INC. recorded sales of 682 billion won in the first quarter of this year, its highest-ever quarterly sales. While operating profit did not reach a record high, it rose 3% year-over-year to 53 billion won.
The reasons cited for the expected strong second-quarter performance include growing demand for sun care products and an increase in new global customers. Typically, the second quarter is the peak season when demand for sun care products rises during the summer, and with global exports surging far beyond expectations, both companies are projected to show remarkable growth in their earnings. In particular, analysts note that domestic indie brands expanding their presence in the U.S. brick-and-mortar market and their full-scale entry into the European market have been key factors.
The assessment is that the continued high won-dollar exchange rate—remaining above the 1,500 won level—will also act as a positive factor in improving earnings. When the won-dollar exchange rate rises, cosmetics ODM companies face higher costs for raw materials imported from overseas; however, they benefit from increased foreign exchange gains as payments from overseas clients in dollars rise. In the case of COSMAX, INC., direct exports to overseas clients accounted for approximately 18% of total sales as of the first quarter. Furthermore, the expansion of overseas exports by indie brands—which have gained a greater price advantage due to the strong won—is expected to increase orders for cosmetics manufacturing, which is another factor contributing to these companies’ improved performance. An official in the cosmetics industry explained, “As indie brands continue to scale up globally—through expanded global sales channels and an increasing number of clients—export orders from clients, particularly for skincare and suncare products, are steadily rising,” adding, “Even considering the high exchange rate, the expansion of orders and growth in overseas markets are the fundamental drivers of improved performance.”
Meanwhile, looking at standalone financial results limited to the cosmetics business, COSMAX, INC. is expected to maintain its leading position in terms of revenue, while KOLMAR KOREA is projected to hold the advantage in terms of margins. Under separate accounting standards, the second-quarter revenue consensus for COSMAX, INC. and KOLMAR KOREA is 485.4 billion won and 405.3 billion won, respectively; however, KOLMAR KOREA’s operating profit is projected to be 63.5 billion won—approximately 10 billion won higher than COSMAX, INC.’s 52.9 billion won.