[Edaily Reporter KIM EUNG-TAE ] Korea Kolmar ( KOLMAR KOREA(161890)) and Cosmax ( COSMAX, INC.(192820)), the two leading Original Design Manufacturer (ODM) companies in the cosmetics industry, are riding a wave of success as they set new record earnings. This is driven by the boom in K-Beauty exports, as major domestic indie brands expand their reach in global markets, leading to a surge in demand for skincare and suncare products. It is projected that a company will surpass 3 trillion won in annual revenue for the first time this year.

According to the Financial Supervisory Service on the 12th, KOLMAR KOREA’s consolidated revenue for the second quarter of this year was 861.3 billion won, with operating profit at 110.3 billion won. Revenue increased by 18% year-over-year, while operating profit grew by 50%. Both revenue and operating profit marked all-time highs on a quarterly basis, and this is the first time quarterly revenue has exceeded 800 billion won.
COSMAX, INC., which announced its earnings on the 11th, also set a new all-time high for the second quarter of this year. On a consolidated basis, COSMAX, INC.’s second-quarter revenue rose 28% year-over-year to 794.9 billion won, while operating profit grew 21% to 73.7 billion won.
With both companies breaking their own records for two consecutive quarters, their first-half results are also at an all-time high. On a consolidated basis, KOLMAR KOREA’s revenue for the first half of this year rose 15% year-over-year to 1.5893 trillion won, while operating profit increased 42% to 189.2 billion won. During the same period, COSMAX, INC.’s revenue rose 22% year-over-year to 1.4769 trillion won, while operating profit increased 13% to 126.8 billion won.
The strong performance of cosmetics ODMs in the second quarter of this year was driven by a significant increase in cosmetics orders as domestic indie brands expanded their overseas sales channels amid the K-Beauty boom. In particular, analysts attribute this success largely to increased demand for sun care products during the heatwave. Revenue at COSMAX, INC.’s domestic subsidiary—which primarily handles orders from domestic indie brands—rose 23% year-over-year to 518.4 billion won, surpassing the 500 billion won mark for the first time on a quarterly basis. KOLMAR KOREA’s domestic subsidiary reported revenue of 430.4 billion won, a 31% increase from the previous year.
The steady acquisition of local overseas clients amid the growing popularity of K-Beauty is also cited as a major factor behind the improved performance. In the second quarter of this year, COSMAX, INC.’s U.S. subsidiary saw revenue grow 79% year-over-year and achieved its first quarterly profit since the company’s founding. This was driven by continued repeat orders from existing major clients, as well as revenue from new clients in the U.S. West Coast region beginning to contribute to the results. KOLMAR KOREA’s Chinese subsidiary also posted strong growth, with revenue rising 16% year-over-year due to the expansion of its client base.
As the influence of K-Beauty expands in the global market, ODM companies are aiming to surpass 3 trillion won in revenue for the first time in history this year. According to financial information provider FnGuide Inc., KOLMAR KOREA’s consensus estimate (average of securities firms’ forecasts) for this year’s consolidated annual revenue is 3.0776 trillion won, a 13% increase from the previous year (2.7224 trillion won). KOLMAR KOREA’s annual sales forecast for this year is estimated at 2.7698 trillion won, a 16% increase from the previous year (2.3988 trillion won).
While the second quarter is generally considered the peak season in the industry, analysts suggest that if domestic indie brands continue to expand their sales channels into Europe, the Middle East, and other regions, the company could set new sales records in the second half of the year as well. An industry official stated, “The popularity of K-Beauty is spreading in the global market, particularly for skincare products,” adding, “While production capacity must be taken into account, if new clients are added or overseas orders increase significantly, there is a possibility that performance in the second half of the year could exceed that of the second quarter.”