[Edaily Reporter KYUNG GYEYOUNG ] CLIO Cosmetics Co., Ltd has once again posted its highest-ever quarterly operating profit for the second quarter.

CLIO Cosmetics Co., Ltd(237880)The company announced on the 13th that its consolidated operating profit for the second quarter was 11.6 billion won, a 230.0% increase compared to the same period last year. Preliminary figures for the same period show revenue rose 5.7% to 86.8 billion won, while net income surged 607.0% to 13.7 billion won. The operating profit margin stood at 13.4%. Operating profit, operating profit margin, and net income all reached record highs for a single quarter.

Cosmetics

Profitability improved significantly as the cost of sales ratio fell from 54.0% in the second quarter of last year to 48.6% in the second quarter of this year, and the selling, general, and administrative (SG&A) expense ratio also decreased from 41.7% to 38.0% over the same period. CLIO Cosmetics Co., Ltd explained that this was due to strengthening the product competitiveness of its major brands to lower the cost of sales ratio and streamlining its cost structure, including SG&A expenses.

Domestic sales reached 45.7 billion won, a 10% increase from the second quarter of last year. This growth was driven by increased sales of CLIO Cosmetics Co., Ltd.’s “Co-Short Edition” Pro Eye Palette and the revamped “Mood Glow Tint” from Peripera in the Health & Beauty (H&B) channel. Sales of Goodal’s suncare line also rose. By scaling back live home shopping broadcasts and reorganizing its channels to focus on data broadcasting, the company significantly reduced its commission expenses.

Overseas sales totaled 41.1 billion won. By expanding its offline distribution network—including Ulta Beauty and Olive Young’s U.S. stores, following its entry into Amazon—sales in North America rose 58% compared to the second quarter of last year. In the second half of the year, the company is set to launch at Nordstrom and Costco. In Europe, it plans to secure online and offline distribution channels in Eastern Europe by launching on Nostino, Europe’s largest beauty e-commerce platform, in the second half of the year.

CLIO Cosmetics Co., Ltd stated, “Profitability has improved significantly as sales expansion driven by brand competitiveness has been coupled with cost structure optimization,” adding, “In the domestic market, we will continue to strengthen the competitiveness of our core brands, focusing on the H&B channel, while overseas, we will continue to expand our distribution networks centered on North America, Europe, and China to maintain robust growth in the second half of the year.”