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Aekyung Q3 Profit Falls 23% as Cosmetics Slow in ChinaCreatrip Team
a month ago
Aekyung reported weaker Q3 results with revenue of KRW 169.3 billion (up 2.4% YoY) but operating profit down 23.6% to KRW 7.3 billion. Cumulative results also fell—revenue KRW 491.6 billion and operating profit KRW 24.5 billion, down 3.2% and 43.7% respectively. Cosmetics sales dropped due to softer Chinese domestic demand: cosmetics revenue KRW 51.5 billion and operating profit KRW 2.1 billion, declines of 9.7% and 45.8%. The company is pushing new launches and digital (TikTok) sales for AGE20’S (a Korean cosmetics brand) and launched SIGNIC (a new US skincare brand) and expanded color ranges. Luna expanded distribution in Russia, the UK and ran influencer events in Japan; domestic sales at H&B stores and Daiso (a Japanese-origin variety store popular in Korea) remained steady. Household goods saw revenue of KRW 114.6 billion (up 7.1%) but margins were squeezed by higher raw material costs. Aekyung is diversifying through new brands and global expansion, but near-term profit recovery is limited.
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