As the global popularity of K-beauty continues, domestic cosmetics companies are posting record-breaking results one after another in the second quarter (April–June). Korea Kolmar and Cosmax, the two leading original design manufacturers (ODM) in the Korean cosmetics industry, both recorded their highest-ever quarterly sales and operating profit. Beauty companies APR and Dalba Global also achieved their largest-ever quarterly results, driven by overseas sales. K-beauty distributor Silicontwo likewise showed double-digit growth.

According to the cosmetics industry on the 13th, Korea Kolmar posted consolidated second-quarter sales of KRW 861.3 billion and operating profit of KRW 110.3 billion this year. These figures represent increases of 17.9% and 50.2%, respectively, compared with the same period a year earlier. Both are record highs on a quarterly basis. It was also the first time that quarterly operating profit exceeded KRW 100 billion. Growth in domestic operations was led by increased orders from local indie brands popular overseas and by higher demand for sun care products during the summer season.

Cosmax also achieved record quarterly results, with consolidated second-quarter sales of KRW 794.9 billion and operating profit of KRW 73.7 billion, up 27.5% and 21.3%, respectively. Sales at the Korean subsidiary reached KRW 518.4 billion, surpassing KRW 500 billion in quarterly sales for the first time. Production orders, particularly for skincare and sun care, increased as export volumes from domestic client companies expanded. Among overseas subsidiaries, sales in the United States and China rose by 79% and 33%, respectively.

Domestic cosmetics brands are also maintaining their growth momentum. On the same day, Dalba Global announced that its consolidated second-quarter sales came in at KRW 186.9 billion, a 46% increase year-on-year. Operating profit climbed 62% to KRW 47.2 billion, with both sales and operating profit reaching all-time quarterly highs.

Earlier, APR reported that its second-quarter sales had surged 134.2% year-on-year to KRW 767.5 billion, while operating profit jumped 134.5% to KRW 190.6 billion. These are the company’s highest quarterly results since its establishment. In particular, overseas sales increased 178% to KRW 704.2 billion, accounting for 92% of total sales. For both companies, sharply rising sales in overseas markets, including North America and Europe, were the main drivers of earnings growth.

Cosmetics distribution companies that connect K-beauty products with overseas consumers are also expanding. Silicontwo, which purchases Korean K-beauty products in bulk and exports and distributes them to more than 170 countries worldwide, posted second-quarter sales of KRW 402.6 billion, up 51.8% from a year earlier. Operating profit rose 59.0% to KRW 83.0 billion.

Industry observers believe that as K-beauty exports continue to expand, ODM manufacturers, brands, and distributors are all benefiting simultaneously. They assess that the diversification of cosmetics exports—from their previous concentration in a few markets such as China and in large brands to a broader spread across the United States, Europe, and Japan—and the rapid overseas growth of small and indie brands have been decisive factors. Cho So-jeong, a researcher at Kiwoom Securities, said, “The reduced dependence of exports on specific countries is a positive factor that enables greater growth over the medium to long term.”

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