South Korea’s leading cosmetics original design manufacturing (ODM) company Kolmar Korea Co. reported historic-high earnings in the first half of this year thanks to stellar overseas sales and widening global presence.

The cosmetics producer disclosed in a regulatory filing on Tuesday that operating profit on a consolidated basis jumped 22 percent to 39.0 billion won ($35.5 million) in the January-June period from the same period last year. Sales grew 20 percent on year to 321.6 billion won. Operating profit for the second quarter ended June reached 21.5 billion won, up 23 percent from a year ago, while sales climbed 22 percent to 173.0 billion won.

Its cosmetics overseas shipments especially showed a strong on-year growth with a 218 percent surge to 20.4 billion won in the first half. Its total cosmetics sales recorded 253.7 billion won in the first six months of this year.

New products developed by Kolmar were met well and the company was able to add new customers after it has successfully built its reputation in large markets such as North America and Europe, added the official.

Sales of its pharmaceuticals sector grew 22.8 percent on year to recorded 77.3 billion won, mainly driven by brisk sales of its liquid-type products including periodontal disease treatment toothpaste. Solid sales of the toothpaste products and liquid medicines helped the company further improve its profitability, said the company official.

Kolmar Korea Holdings Co., the holding company of Kolmar Korea Group, registered 33.2 billion won in operating profit in the first half, up 18 percent from a year ago. Sales grew 10 percent to 166.7 billion. The April-June quarter operating profit expanded 9 percent to 17.6 billion won from the same period last year, while sales rose 6 percent to 86.2 billion won.

Kolmar BNH Co., a health supplementary producer, posted 19.7 billion won in operating profit, up 14 percent on year, and 131.3 billion won in sales, up 10 percent on year. Its second-quarter operating profit expanded 9 percent on year to 10.3 billion won on record-high sales of 67.8 billion won that increased 6 percent on year.

Following the stellar performance on steady growth at home and abroad, the company pledges to continue maintaining its high-growth momentum in its three core sectors - cosmetics, pharmaceuticals, and health supplementary products, said Yoon Dong-han, chairman of Kolmar Korea.

By Chung Soon-woo

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