Leading **cosmetics contract manufacturer Kolmar Korea** announced **record first-quarter earnings**, demonstrating robust growth driven by surging **sun care orders** and the expansion of innovative **indie beauty brands**, significantly fueling the ongoing **K-beauty boom**.
For the **January-March period**, Kolmar Korea’s **operating profit** soared by an impressive 31.6 percent year-over-year, reaching 78.9 billion won ($54 million). **Revenue** increased by 11.5 percent to 728 billion won, while **net profit** saw a remarkable surge of 158.7 percent, hitting 60 billion won.
A company official attributed these **record first-quarter earnings** directly to the substantial increase in both **skin care** and **sun care orders**, perfectly aligning with strong seasonal demand.
The company’s **core Korean business** spearheaded this growth, achieving **record quarterly performance**. Revenue for the Korean segment surged 25 percent to 343 billion won, with **operating profit** climbing an impressive 51 percent to 51.2 billion won.
Kolmar Korea identified two pivotal forces **reshaping the beauty industry**: the exponential growth of **indie beauty brands** and a robust, expanding pipeline of **contract manufacturing orders** from **luxury beauty labels** focused on developing their flagship **skin care lines**.
Management expressed confidence, anticipating this strong **momentum to continue into the second quarter**. While the current Middle East conflict has presented only a limited impact on first-half operations, Kolmar Korea emphasized its proactive efforts in **reinforcing supply chain management** to mitigate any potential longer-term disruptions.
Internationally, the **Chinese unit** demonstrated a solid 14 percent **revenue gain**, reaching 47.3 billion won, primarily driven by contributions from new clientele. Conversely, the **North American business** experienced a slight moderation due to weaker orders from its primary customer. However, Kolmar Korea is optimistic, expecting new clients at its second **U.S. manufacturing facility** to stabilize performance in the second half of the year.
Kolmar Korea’s **pharmaceutical unit**, **HK inno.N**, also delivered strong results, reporting a significant 30.8 percent rise in **operating profit**, reaching 33.2 billion won. This growth was primarily fueled by high-margin **prescription drug sales**, successfully offsetting a slight dip in its health and beauty product segments.
