[Edaily Reporter KYUNG GYEYOUNG ] SILICON 2 Co.,Ltd., a K-Beauty distributor, posted its highest-ever quarterly revenue in the third quarter, driven by continued strong growth, particularly in North and Latin America.

SILICON 2 Co.,Ltd.(257720)The company announced on the 11th that its consolidated third-quarter revenue reached 424.4 billion won, a 41.7% increase year-over-year. Preliminary figures for the same period showed operating profit rose 10.4% to 69.6 billion won, while net income fell 84.9% to 8.8 billion won.

SILICON 2 Co.,Ltd. set a new record for revenue in the third quarter despite the won’s strength (a decline in the won-dollar exchange rate), which had a negative impact on won-denominated figures. However, the decline in net income was significant as non-operating losses increased—including foreign exchange losses on the conversion of foreign currency assets—due to the strong won.

SILICON 2 Co.,Ltd. stated, “The decline in profitability was limited compared to the extent of the exchange rate drop,” adding, “We responded by adjusting sales prices and renegotiating transaction terms.”

Europe was the region that recorded the highest revenue. Revenue in Europe reached 160.6 billion won, a 57.7% increase compared to the third quarter of last year. This was largely driven by local distributors shipping goods ahead of the year-end.

The North American region posted the highest sales growth rate compared to the previous quarter. Sales in North America rose 21.7% quarter-over-quarter to 108.5 billion won. This represents a 49.4% increase year-over-year, driven by increased transactions with retailers such as Ulta Beauty and Target. The number of new stock-keeping units (SKUs) listed in these channels also increased.

In addition, the company posted balanced growth (year-over-year) across other regions: △Latin America, up 123.3% to 34.2 billion won; △Asia, up 4.8% to 55.3 billion won; △the Commonwealth of Independent States (CIS), up 50.6% to 22.3 billion won; and △Oceania, up 27.7% to 10.5 billion won. However, in the Middle East region, sales fell 2.8% year-over-year to 29.7 billion won due to geopolitical factors.

SILICON 2 Co.,Ltd. explained that it plans to use the 447.5 billion won secured through the issuance of 300 billion won worth of redeemable convertible shares (RCS) at the end of September to expand its global infrastructure and increase its market share. The company is also strengthening its domestic logistics capabilities by acquiring a logistics center in Yongin, Gyeonggi Province.

Regarding overseas infrastructure development, SILICON 2 Co.,Ltd. began operations at a logistics warehouse in the UK during the third quarter, and its subsidiaries in Brazil and Japan have established local sales operations. The company also announced in June that it plans to accelerate its expansion into the Latin American and Asian markets in collaboration with its Mexican subsidiary.