COSMAX Achieves Record Revenue and Profit in Q2; U.S. Subsidiary Reports First Profit

COSMAX, the largest global cosmetics ODM (Research, Development, and Manufacturing) company, has reported its highest-ever quarterly revenue and operating profit for the second quarter of 2026. The company experienced growth across all subsidiaries, including Korea, China, the United States, and Southeast Asia, with the U.S. performance marking a significant milestone by achieving profitability for the first time since its inception.

According to a financial disclosure through the Financial Supervisory Service, COSMAX's consolidated revenue for Q2 reached 794.9 billion KRW, reflecting a 27% increase compared to the same period last year. The operating profit also saw a 21% increase, totaling 73.7 billion KRW, with an operating profit margin of 9.3%.

For the first half of the year, the consolidated revenue amounted to 1.4769 trillion KRW, and the operating profit reached 126.8 billion KRW, marking increases of 22% and 13% year-on-year, respectively.

The Korean subsidiary led the overall growth in Q2, achieving a remarkable milestone by surpassing 500 billion KRW in quarterly revenue for the first time, with a total of 518.4 billion KRW—a 23% increase year-on-year. During the same period, operating profit rose by 13% to 56.4 billion KRW.

The Korean subsidiary continues to see robust growth as K-beauty indie brand clients expand their reach beyond the U.S. to global markets. This steady growth is supported by a strong performance in the essential product categories, alongside efforts to improve profitability in sun care and gel mask segments, which have contributed to increased operating profits. Moreover, collaboration with global and European clients is also on the rise, leading to increased direct export revenues.

In international operations, the Chinese subsidiary reported steady growth of 33% year-on-year, achieving revenue of 197.4 billion KRW. The Shanghai branch saw high growth rates among local color cosmetic clients, prominently including base makeup and blush products. The Guangzhou branch recorded balanced growth across all channels, thanks to efforts to diversify its sales channels.

Significantly, the U.S. subsidiary has successfully turned profitable for the first time, reporting a revenue increase of 79% year-on-year, totaling 53.8 billion KRW. COSMAX USA has implemented various measures to improve operational efficiency, including cost reductions, and has expanded its sales network targeting western indie brands. Notably, sales from clients in the western region have begun to positively influence financial results, with stable re-orders from existing major clients contributing to the consistency in revenue growth and improved profitability.

The Southeast Asian operations also reported strong performance. The Indonesian subsidiary achieved revenue of 28.9 billion KRW, a 38% increase year-on-year, driven by the recovery of results from existing modern trade channel clients, including convenience stores and supermarkets, as well as new client growth in general trade channels. The recovery of major clients focused on high-margin categories such as creams and sun care has effectively contributed to profitability defense. Meanwhile, exports to neighboring countries such as Malaysia, Singapore, and India are also on an expansion trajectory.

The Thailand subsidiary recorded an 8% growth year-on-year, achieving 24.9 billion KRW, supported by increased re-orders of existing hit products from major clients. As production volumes expand among large clients, the OBM (Original Brand Manufacturer) sector is also diversifying revenue sources by supplying various new brands to clients.

A COSMAX representative stated, "With all subsidiaries growing in sync and achieving historic milestones like the Korean subsidiary surpassing 500 billion KRW in quarterly revenue and the U.S. subsidiary achieving its first profitable quarter, we are poised to further solidify our position as the top global cosmetics ODM in the second half, driven by strong demand in skincare and the successful onboarding of new clients."