Able C&C Reports Strong Q2 Performance with Significant Profit Growth

Able C&C (CEO Shin Yoo-jung), known for its key brands MISSHA and A’pieu, has shown solid performance across major global markets, achieving both revenue growth and profitability in the second quarter.

On a consolidated basis, Able C&C reported sales of 65.2 billion KRW and an operating profit of 10.4 billion KRW for Q2. This reflects a year-on-year sales increase of 5% and a 52.5% rise in operating profit, resulting in an operating profit margin of approximately 16%.

Significantly, excluding sales from domestic direct-operated stores that were closed, the actual sales growth rate reached 24.5% compared to the same period last year, with operating profit also rising by 10.4% from the previous quarter. The cumulative operating profit for the first half of the year exceeded more than 10% of last year's total, indicating successful implementation of a global-centric business restructuring and profitability improvements undertaken since last year.

In Q2, overseas sales surged by 38% year-on-year and 15% quarter-on-quarter, driving overall performance growth. Consequently, the proportion of overseas sales within total revenue expanded to 75%. Achieving the annual overseas sales proportion target early this year underscores the swift advancement of the transition from a domestic-focused to a global-centered business structure.

The U.S. and Europe played leading roles in driving overseas business growth. Sales in the U.S. soared by 154% compared to the previous year, while Europe recorded a remarkable growth of 48%, setting a new record for quarterly sales.

In Europe, simultaneous expansion of revenue from existing clients and a new offline distribution network have taken place. Key distribution channels, including Boots and Superdrug in the UK, and DM in Germany, have been enriched, while new offline stores have been vigorously established, particularly in large supermarket chains in Russia. As a result, the number of sales points in Europe has roughly doubled compared to last year, leading to a 37.2% increase in revenue from the previous quarter.

In the U.S., growth has continued, driven by platforms like Amazon and TikTok Shop. Notably, sales of MISSHA during June's Amazon Prime Day surged by 43% compared to last year's event, showing strong brand traffic and sales conversion rates in the local market.

Growth trends are also evident in other major markets outside the U.S. and Europe. Sales in China increased by 31% year-on-year, while the Middle East saw a 50% increase, and other Asian regions recorded 39% growth. In particular, the expansion of direct sales for A’pieu in China and local distribution channel growth in the Middle East have notably driven these increases.

With double-digit growth continuing in emerging markets alongside the robust growth rates in the U.S. and Europe, it is noted that the scope of global business expansion is broadening. The balanced performance across various regions indicates that Able C&C is establishing a diversified global portfolio tailored to the growth stages and distribution environments of each region, moving away from a previous business structure concentrated in specific countries.

Domestically, the company has repositioned its marketing and sales capabilities toward higher-growth channels. Consequently, revenue from major online platforms, such as Naver and 11st, increased by 45.3% year-on-year. At Daiso, the new launch of the A’pieu hair vinegar line expanded sales touchpoints, contributing to a 32% year-on-year increase in channel revenue. This strategy of selecting channels based on growth potential has resulted in improved profitability in the domestic business while expanding global operations.

Shin Yoo-jung, CEO of Able C&C, remarked, "This performance demonstrates that the company’s transformation is not a one-time spike but a result of structural change," adding, "MISSHA is the only one among first-generation K-beauty brands that has successfully designed channels, marketing, products, and organization to adapt to the changing competitive environment." He further noted plans to enhance growth in the U.S. and Europe and strengthen strategies in growth markets such as the Middle East and South America, while also expanding a skincare-focused product portfolio and new categories to create new growth opportunities.