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CLIO Cosmetics Co. 이미지 확대
(Kosdaq: 237880), a South Korean small-to-medium sized cosmetics manufacturer, is expected to see a sharp turnaround in its earnings next year on revived demand for Korean beauty products in China amid eased diplomatic relations between Seoul and Beijing and expansion in the U.S. market.
The company’s operating profit for 2018 is estimated to surge 143 percent to 19 billion won ($17.7 million) from 2017 when it is expected to plunge 71.6 percent on year to 8 billion won. Next year sales would also jump 29.7 percent on year to 253 billion won after edging down 0.8 percent to 195 billion won this year.
The poor result for this year mainly owes to a rise in the company’s one-off spending such as increased labor cost, leases and other operating expenses to support its global expansion in the fourth quarter.
In the October-December quarter, the company’s operating profit is forecast to plunge 36.4 percent to 800 million won on a consolidated basis from a year-ago period while sales are projected to rise 6.8 percent to reach 50 billion won.
But the company is expected to see a sharp rebound in its earnings next year thanks to signs of recovery in demand for Korean beauty products in China after the two countries have recently agreed to mend their ties that had been strained by Korea’s decision to host an U.S. antimissile system on its soil.
Since opening its first Chinese store in Guangzhou in May 2016, CLIO Cosmetics has steadily built up its sales network in China even during the year-long diplomatic row. The recent thaw in bilateral relations has enabled the company to restart marketing activities in China. It currently operates 48 shops in China as of the third quarter and aims to open 70 more shops next year.
The cosmetics maker is also seeking to launch three of its major brands in the United States by 2019, a move that will lower its reliance on China and diversify its global portfolio.
For more information, please contact Lee Sun-hwa, analyst at Eugene Investment & Securities, at +82-2-368-6152, email@example.com or visit Financial Supervisory Service (http://englishdart.fss.or.kr/). Company details
and latest quarterly report
can be searched under CLIO Cosmetics
. Latest trading data
is available via Korea Exchange (http://englishdart.fss.or.kr/) under CLIO Cosmetics
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