[Edaily Reporter YU JIN-HEE ] Life care specialist KMPHARMACEUTICAL Co.,Ltd.(225430)has emerged from a prolonged period of stagnant performance and is now on a path of substantial revenue growth. This is the result of tangible outcomes from its collaboration with a global company with a 100-year history, combined with the expansion of its high-value-added skincare business. The company plans to once again exceed 20 billion won in annual revenue this year, driven by increased production capacity and portfolio diversification.

Collaboration with Swiss ‘Weleda’ Gains Momentum… Cumulative Sales Surpass 7 Billion Won

According to industry sources on the 21st, cumulative production revenue from the ongoing collaboration between KMPHARMACEUTICAL Co.,Ltd. and Swiss natural and organic cosmetics and pharmaceutical company Weleda has recently surpassed 7 billion won. Order volumes for the first half of this year also rose sharply by more than 40% compared to the previous year.

The two companies began their collaboration in 2024 by signing a Memorandum of Understanding (MOU) regarding joint research and development of oral care products. Founded in 1921, Weleda is a global brand that has established a solid foothold throughout Europe and North America. It possesses expertise in formulating natural ingredients that meet stringent European standards. KMPHARMACEUTICAL Co.,Ltd. secured its status as a partner by leveraging its oral care manufacturing capabilities, accumulated since 2001, and its rapid technical communication.

In fact, KMPHARMACEUTICAL Co.,Ltd. has successfully developed and is currently supplying two types of Weleda fluoride toothpaste for children. The company has proven its technical reliability by fully passing regular quality audits conducted by the global corporation. Building on its success in the domestic market, it is actively engaged in discussions to launch local overseas branches and expand into global distribution networks. Analysts note that, given the high unit prices of this premium product line, it is expected to make a significant contribution to the company’s earnings.

According to the global market research firm Fortune Business Insights (FBI), the global oral care market is projected to grow from $32.6 billion (approximately 45 trillion won) in 2023 to $46.52 billion (approximately 65 trillion won) by 2032.

KMPHARMACEUTICAL Co.,Ltd. has experienced severe stagnation over the past four years, remaining stuck in an annual revenue range of 14 to 17 billion won. After recording 22.9 billion won in 2020 and 22.7 billion won in 2021, revenue plummeted to 15.6 billion won in 2022, resulting in an operating loss of 1.2 billion won and a shift to the red. The company remained in the red, posting sales of 17.8 billion won (an operating loss of 1.1 billion won) in 2023, 14.5 billion won (an operating loss of 2.6 billion won) in 2024, and 16.0 billion won (an operating loss of 2.9 billion won) in 2025. This was due to a combination of rising raw material prices, new product development costs, and advertising expenses to promote its own brand. The poor performance led to a decline in the company’s market value.

However, a clear turnaround has been evident since the first half of this year, driven in part by the “Weleda effect.” Revenue for the first half of this year reached 8.3 billion won, an increase of approximately 13.4% compared to the same period last year. Growth was driven by an expansion in orders for original equipment manufacturing (OEM) and original design manufacturing (ODM). Considering the seasonal peak in the second half of the year and the increase in supply volumes for Weleda, it is highly likely that annual revenue will once again exceed 20 billion won this year.

With Plant 1 operating at full capacity, Plant 2 is expanding its skincare production... “Target: 50 billion won in annual revenue by 2028”

In line with this growth trend, the company has also undertaken a major overhaul of its production infrastructure. KMPHARMACEUTICAL Co.,Ltd.’s Pyeongtaek, Gyeonggi Province facility is divided into Plant 1, which focuses on oral care over-the-counter products, and Plant 2, which focuses on skincare. Currently, Plant 1 has already exceeded its full production capacity. This is due to a surge in orders from major domestic pharmaceutical companies and for Weleda products. Consequently, the company has utilized the Plant 2 site to expand its high-value-added cosmetics production line.

In particular, the company has maintained its certification for eight consecutive years since receiving a compliance determination from the U.S. Food and Drug Administration (FDA) in 2019 for its manufacturing and quality control standards for over-the-counter (OTC) products (cGMP). Having recently completed the registration to maintain these facilities, the company has firmly established its competitiveness in exporting U.S. over-the-counter (OTC) products. By implementing its proprietary “Pyeongtaek Plant SUNJIN Co., Ltd. Advancement System,” the company applies strict microbial control and homogeneity maintenance technologies from raw material receipt to finished product shipment.

KMPHARMACEUTICAL Co.,Ltd. has outlined three key strategies to return to profitability: △ expanding the share of its skincare business, △ expanding its global export reach, and △ strengthening the profitability of its own brands.

First, the company will focus on growing its cosmetics ODM business to increase its share of total revenue to 40%. Earlier this year, it signed a supply agreement with the cosmetics brand General Brands and began supplying nine skincare products to China, Vietnam, Thailand, Russia, and other markets. Skincare products have higher profit margins than general household goods and are expected to be the primary driver of improved profitability.

The company is also accelerating the overseas expansion of its own brands. “Zerocipe,” a scalp care brand featuring the patented nano-graphene material, has finalized an exclusive contract in Thailand and is exploring joint development opportunities with a British company. “FOAMGLE,” a foaming mouthwash now available on Amazon in the U.S., is seeing its quarterly average sales grow by 65%.

The company is also continuing its ongoing value-enhancement initiatives. To stabilize its stock price and protect shareholder rights, KMPHARMACEUTICAL Co.,Ltd. has decided to directly repurchase 200,712 common shares—representing 3.72% of its total issued shares (approximately 300 million won)—on the open market.

This is a follow-up measure after the company successfully completed a 1 billion won third-party private placement, which included a contribution of personal funds by the CEO. Kang Il-mo, Chairman of KMPHARMACEUTICAL Co.,Ltd. and the company’s largest shareholder, also solidified his commitment to responsible management by raising his stake to 39.60% through on-market purchases. The company is also implementing aggressive financial restructuring measures, such as the sale of its office building—which had been used as the Seoul sales office—to secure liquidity.

Baek Seung-won, CEO of KMPHARMACEUTICAL Co.,Ltd., emphasized, “We will combine the high growth of our skincare business with the profitability of our own brands, building on a stable OEM and ODM foundation,” adding, “We will achieve annual sales of 50 billion won by 2028 and transform the company into a fully profitable enterprise.”