Aekyung Industrial posts record quarterly sales but swings to operating loss

Aekyung Industrial posted an operating loss in the third quarter despite strong sales growth, as increased marketing spending to break into global markets weighed on profitability. Both its lifestyle products and cosmetics businesses recorded double-digit sales growth.

Third-quarter consolidated sales reached 190.4 billion won ($142 million), up 12.5 percent from the same period a year earlier, industry sources said Tuesday. The company recorded an operating loss of 3.3 billion won over the same period.

By business segment, the lifestyle products division posted third-quarter sales of 127.8 billion won, up 11.5 percent year on year — a record high on a quarterly basis. Personal care products, including hair care and body care lines, drove the growth with a 13.1 percent sales increase.

The cosmetics division posted sales of 58.7 billion won, up 13.9 percent from a year earlier, supported by continued double-digit growth in overseas markets.

Aekyung Industrial has continued to invest in its brands as part of its push into global markets. Its hair-loss care brand Blackforet signed actor Kim Won-hun, who is also a content creator, as its new model. AGE20'S named IVE's Rei as a global ambassador and pursued a rebranding campaign centered on the "Skin First Makeup" concept. The brands Luna, Signiq and One Thing also expanded consumer touchpoints through pop-up stores and experiential events.

"We plan to strengthen competitiveness in each market while building a foundation for mid- to long-term growth, based on strategies including diversifying global markets, reinforcing the competitiveness of our core brands, and expanding our portfolio around promising categories," a company official said.