[Edaily Reporter KYUNG GYEYOUNG ] AEKYUNG INDUSTRIAL set a new record for quarterly revenue in the second quarter by accelerating its overseas expansion. However, profitability declined as the company focused on developing new strategic products and strengthening marketing investments.

AEKYUNG INDUSTRIAL(018250)The company announced on the 12th that its consolidated revenue for the second quarter reached 194.2 billion won, a 13.3% increase compared to the same period last year. Driven by growth overseas, the company set a new record for quarterly revenue. The share of overseas sales reached 42%, an increase of 7 percentage points compared to the second quarter of last year. During the same period, operating profit was provisionally reported at 4.5 billion won, down 59.4%, and net income at 4.6 billion won, down 58.5%.

By segment, sales in the cosmetics business reached 75.3 billion won, a 20.5% increase from the second quarter of last year. Operating profit for the same period fell 39.6% to 4.1 billion won.

Performance began to recover as the company restructured its business in China and strengthened both its online and offline channels. The company has diversified its business scope beyond China to include Olive Young in the U.S., the Russian beauty distribution channel Gold Apple, and shopping malls in Central Asia. In Japan, in particular, the makeup brand Luna expanded its presence in brick-and-mortar stores with a focus on new products, while AGE20’S solidified its position by ranking first in sales during a Qoo10 event.

AEKYUNG INDUSTRIAL is also focusing on developing new strategic products and investing in marketing. AGE20’S, which selected Choi Mi-na as its brand ambassador, has launched consumer-participation marketing campaigns through traveling pop-up stores, while Luna is focusing on experiential pop-up stores and digital marketing in Japan. Following the merger with its subsidiary “One Thing,” the company is reorganizing its brand around the Centella Asiatica line and launching new products.

Sales in the household goods business rose 9.6% year-over-year to 115.2 billion won, while operating profit fell 91.4% to 400 million won. The company expanded its scale by continuing to grow in the U.S. and Europe, led by personal care products such as hair and body care.

The company has expanded its distribution channels, with “Kerasis” now available at Walmart stores and online in the U.S. Kerasis has expanded into not only European markets such as Poland and Germany but also Brazil, Paraguay, and Russia. The company is targeting North America and Europe with “Showermate” and China and Japan with “Lubcent,” respectively. It is expanding its engagement with local consumers by hosting events such as the “K-Pop Random Play Dance Challenge,” leveraging K-Pop as a connection point.

AEKYUNG INDUSTRIAL plans to continue implementing market-specific strategies in the second half of the year. An AEKYUNG INDUSTRIAL official stated, “Since consumer preferences for products and marketing vary by country, we are broadening our reach through market-tailored strategies,” adding, “We will continue to enter major global distribution channels and explore new markets to expand the foundation for our global business growth.”