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The Korea Herald
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THE INVESTOR
March 19, 2024

Retail & Consumer

Aekyung reiterates goal to hit W1tr sales by 2020

  • PUBLISHED :March 23, 2018 - 15:54
  • UPDATED :March 23, 2018 - 22:37
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[THE INVESTOR] Aekyung Industrial on March 22 said it will target annual sales of 1 trillion won (US$924.89 million) by 2020, and operating profit ratio of 15 percent over the next three years.

The announcement came on the day the firm went public, making it the first company to debut on KOSPI this year. On March 23, the stock ended at 35,000 won (US$32.55), up 2.94 percent.




Although it had earlier announced the same goals, many critics doubted that it could go ahead with the listing plans this year, especially due to Aekyung’s involvement in fatal humidifier disinfectants that led to the deaths of hundreds between October 2002 and April 2013.

“As a listed company, we will become a firm that grows with our customers and society,” Aekyung Industrial CEO Lee Yun-kyu said in a statement.

The company said most of the funding will go into research and development, in particular for launching 10 new brands in the cosmetics sector. Aekyung launched a cosmetic brand called AGE 20s in 2012, and its flagship moisture essence foundation raked in over 139 billion won from home shopping channels alone. Cosmetics now account for 36.9 percent of its total business, increasing from 15 percent in 2015.

Aekyung now expects that by 2020, cosmetics will take up the biggest portion.

The company also plans to further expand its presence overseas, aiming for 13 billion won sales in China this year. The country currently accounts for one-quarter of Aekyung’s global cosmetics sales. The expansion will be executed through a local entity in Shanghai set up in November last year.

“Our Chinese business was not affected by the THAAD row because we focused more on direct online sales, instead of offline stores,” a spokesperson told The Investor.

The company also hopes to enter Japan, Southeast Asia, and the US this year.

Aekyung was established in 1985 and its sales reached 440.5 billion won in the third quarter last year. It is the second-largest household goods and cosmetics maker here, with 20.7 percent market share, after LG Household & Health Care, which has 35.2 percent.

By Song Seung-hyun (ssh@heraldcorp.com)

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