[News Space=Reporter seungwon lee] Cosmax, a global cosmetics research, development, and production (ODM) company, has set out to solidify its position as the global industry leader by surpassing KRW 2 trillion in annual sales. This was mainly due to the rapid growth of overseas corporations, including those in Southeast Asia, as well as joint growth with domestic indie brand clients.

Cosmax announced on the 24th through a public disclosure that its consolidated financial statements for 2024 showed sales of KRW 2,166.1 billion, up 21.9% year-on-year. During the same period, operating profit was KRW 175.4 billion, and net profit was KRW 88.4 billion, up 51.6% and 133.9%, respectively.

Cosmax Korea surpassed KRW 1 trillion in sales for the first time in 2023 and continued its high growth last year. Sales increased 28.4% year-on-year to KRW 1.3577 trillion, and operating profit increased 59.8% to KRW 138.7 billion.

Domestic indie brand clients have been able to achieve double-digit growth by doing well in the global market, with both domestic sales and exports increasing significantly. As top clients’ orders increased and fast-growing small clients joined in, the stability of the business structure also increased.

The proportion by product type was 5:5 for basic and color products. Even by detailed type, it showed an even distribution without being biased towards a specific type, from color products such as foundation, lip, and powder to basic products such as essence, cream, and sun care.

Despite the slowdown in cosmetics consumption in China, Cosmax China has started to bounce back from negative growth. It recorded sales of KRW 574.3 billion, up 4.9% year-on-year. It achieved sales growth by diversifying its customer base from existing online channels to offline and regional brands.

In addition, the Isen joint venture factory, which began operation in the second half of 2023, is also entering a stable orbit and its contribution to sales is increasing.

In terms of growth, Southeast Asian corporations, including Indonesia and Thailand, have surpassed domestic corporations. Cosmax Indonesia recorded sales of KRW 113.2 billion, up 31.9% year-on-year, surpassing KRW 100 billion in sales for the first time since its establishment in 2011. In particular, the increase in the proportion of basic products, such as essences, sunscreens, and cleansing water, in the local market contributed to profit generation.

Cosmax Thailand's sales surged 70.4% year-on-year to KRW 43.5 billion. Top-tier clients grew in size in line with the growth of the Thai cosmetics market, contributing to increased sales.

The US corporation's sales were recorded at 137.1 billion won, a 2% decrease from the previous year. With the influx of new customers through the US California sales office since the end of last year, full-scale sales are expected this year.

This year, Cosmax plans to spur growth in the domestic market and overseas exports with indie brands that are leading K-beauty. It has established regionally customized systems and strategies for strategic items such as creams, sun care, foundations, and lip products.

In particular, sun care products are expected to see sales growth of over 50%, reflecting the tastes of MZ generation consumers. The number of sunscreen products produced is expected to increase by more than three times compared to the previous year, and more than four times as many customers as last year are planning to enter the sunscreen market by collaborating with Cosmax.

In addition, the Korean corporation plans to respond to the increase in indie brand orders by increasing the number of lines in the factory, while strengthening support according to each type of customer to continue mutual growth. The Southeast Asian corporation, which is continuing rapid growth, plans to actively utilize the benefits of the Halal-certified factory and further increase the export ratio to neighboring countries such as Malaysia, Cambodia, and Vietnam to expand the sales network in Southeast Asia.

We are also pursuing the 'LOCO Project' to secure customers in emerging markets such as India, Central and South America, and Africa. We plan to supply products that will serve as locomotives leading the local market by securing a pool of diverse raw materials and auxiliary materials from around the world while maintaining core functions in line with local consumer demand.

A Cosmax official explained, “Last year, thanks to the growth of indie brands and brisk exports of K-beauty, we surpassed 2 trillion won in cosmetics ODM sales,” and “We will solidify our position as the world’s No. 1 cosmetics ODM company by discovering potential customers and segmenting customers by region.”