This article is by Noh Yu-rim and read by an artificial voice.

Korean cosmetics original design manufacturers (ODMs) continued to post strong results in the third quarter, driven by steady global demand for K-beauty products and a growing overseas client base.
Global cosmetics ODM firm Cosmax reported third-quarter sales of 585.6 billion won ($403 million) and an operating profit of 42.7 billion won. Revenue rose 10.5 percent from a year earlier, while operating profit slipped 1.6 percent.
"A surge in domestic indie beauty brand clients contributed to revenue growth, but higher initial service costs temporarily weighed on profit," a Cosmax representative said.
Sales from Korean operations climbed 10.3 percent to 383.5 billion won, led by robust skincare demand, especially for hydrogel sheet masks and sun care products. Sun care sales alone jumped 80 percent on year, fueled by new product types - like sun serums - gaining traction in Korea and abroad.
Among Cosmax's overseas units, its operations in China and the United States stood out. Revenue from its Chinese subsidiary reached 140 billion won, up 22 percent from the previous year, while the U.S. arm brought in 36.9 billion won, up 13.6 percent.

"Recovery is evident in key markets like China and the United States," the Cosmax representative added. "Growth in China was driven by major clients launching new products and diversifying sales channels, and the U.S. operation benefited from the influx of new clients at the end of last year."
Kolmar Korea, another leading cosmetics ODM firm, reported record-breaking quarterly results on Friday, continuing its growth from the previous quarter.
Kolmar Korea posted a consolidated revenue of 683 billion won in the third quarter, up 9.02 percent on year. Operating profit rose 6.95 percent to 58.3 billion won.
The strong performance was led by its Korean unit, which, on a standalone basis, posted a third-quarter revenue of 322 billion won and operating profit of 44.3 billion won - an 18 percent and 19 percent growth, respectively.
"A spike in overseas demand for skincare brands significantly boosted export performance this quarter," said a Kolmar Korea spokesperson. Skincare products accounted for 49 percent of the company's product mix in the third quarter.
However, the company's U.S. operations struggled. Revenue at its American subsidiary fell 54 percent on year to 8.1 billion won, and operating losses widened to 6.4 billion won.

The company explained that its first U.S. plant, which mainly produces color cosmetics, saw lower utilization due to reduced orders from its largest client. Its second plant, which began trial operations in June, experienced delayed orders due to concerns about U.S. tariffs.
"There were temporary cost increases due to trial runs at the second plant. Changes in order schedules by key clients also impacted performance," the company said. "We expect profitability to improve once the second plant becomes fully operational and we secure more clients."
Both companies are aiming to sustain momentum into the fourth quarter, anticipating a seasonal boost in cosmetic demand.
"We are focused on new product development and production for major global shopping events like China's Singles' Day and the United States' Black Friday," said a Cosmax representative.
"We're concentrating on R&D to support clients' global competitiveness and expanding our sales network by leveraging overseas production sites," said a Kolmar Korea spokesperson.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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