Cosmax Inc., a South Korean cosmetics material developer and original design manufacturer, on Monday reported a nearly 50 percent gain in operating profit in the first half of this year on an all-time high sales achieved by steady growth in business at both home and abroad.

The company posted an operating profit of 31.3 billion won ($28.2 million) on a consolidated basis in the January-June period of this year, a 45.7 percent rise from the same period of last year. Sales jumped 40.2 percent on year to 371.2 billion won, the highest first-half sales since its inception in 1992. In the March-June period alone, the company’s operating profit increased 31.4 percent on year to 18.2 billion won on sales of 197.7 billion won that increased 33.3 percent over the same period.

According to Cosmax, its first-half sales surged led by brisk sales of new beauty and skin care products such as functional facial creams, sun sticks, and gel-type eyeliners at large retailers including brand stores and home shopping channels, as well as an increase in the supply of popular cosmetics products of Clio and Memebox brands. The company also saw its profitability rise, mainly driven by improved productivity on expended automation equipment and lower unit costs led by higher sales at its businesses in the United States and Indonesia.

In particular, Cosmax’s business in China enjoyed stellar sales. Sales of Cosmax China that is based in Shanghai surged 42 percent on year to 122.5 billion won in the first half of 2016. Sales of Cosmax in Guangzhou remained stagnant due to additional facility construction projects, but its operating profit margin remained above 20 percent. Cosmax China and Cosmax Guangzhou are currently doubling each of their production capacity with the goal of obtaining licensing approval in the country by the end of this year.

Health supplement units under Cosmax Group also posted solid earnings. Sales of Nutri Biotech Co. jumped 70.2 percent to 59.9 billion won in the first six months of the year while those of Cosmax Bio Co. increased 30.6 percent to 38.4 billion won over the same period.

Lee Kyung-soo, Cosmax’s chairman and chief executive, said that in addition to domestic and China markets, growth is on track in other overseas markets including Indonesia where the company began producing halal-certified products and the U.S. where the company has launched production for global brands. Lee noted that units like Nutri Biotech, a leader in Korea’s functional food market that is expanding facilities in the U.S. and Australia, are also Cosmax Group’s core growth engines.

By Chung Soon-woo

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