1. Kolmar Korea’s Q1 Results: The Earnings Shock
Kolmar Korea reported Q1 2025 revenue of KRW 328.1 billion (down 56% YoY) and operating profit of KRW 49 billion (down 41% YoY), significantly below market consensus. This underperformance has raised concerns among investors.
2. Analyzing the Underperformance: A Confluence of Factors
The earnings shock wasn’t caused by a single factor, but rather a confluence of factors. Externally, the global economic slowdown and increasing exchange rate volatility played a role. Internally, low operating rates at overseas subsidiaries and sluggish performance in the packaging business segment negatively impacted the results.
3. Are There Any Positive Signs?: Solid Fundamentals and Growth Drivers
Despite the disappointing results, Kolmar Korea’s fundamentals remain solid. The cosmetics and pharmaceuticals business segments continue to show steady growth. In particular, ‘K-Cab’ in the pharmaceuticals segment is expected to be a future growth driver with its expansion into the global market.
4. Action Plan for Investors: A Cautious Approach and Long-Term Perspective
Increased short-term stock price volatility is likely, requiring a cautious investment approach. Investors should consider the possibility of an earnings recovery, competitiveness in each business segment, and changes in the macroeconomic environment when making investment decisions from a long-term perspective. Pay close attention to the Q2 earnings announcement and management’s future strategy presentation, carefully analyzing the company’s response strategies.