Clio Cosmetics Q1: Goodal, Dermatory skin care sales boost enhances overall profitability

The South Korean beauty company achieved sales growth of 24% to KRW93bn (USD68m) while operating profit increased by 63% to KRW8.5bn (USD6.21m).

This marked 12 ​consecutive quarters of growth for the company.

According to the company, this was a record-breaking quarter, outperforming the Q4 results of the previous fiscal year, which broke its records with sales of KRW89.7bn (USD65.6m).

Clio credited its continued growth to the reinforcement of its skin care brands Goodal and Dermatory, which helped to strengthen its place in the ‘basic cosmetics’ category in Korea.

This, along with improving its distribution channel efficiency, helped to enhance overall profitability.

Domestic growth

In the Korean market, sales grew by 22% to KRW51.1bn (USD37.3m).

Sales in the health and beauty (H&B) channel, which accounts for more than half (56%) of sales at home, grew by 14% compared to the same period last year.

This was attributed to the growth of domestic demand and the influx of inbound tourists.

In particular, the firm observed double-digit growth with skin care brand Goodall and Dermatory within H&B.

Clio also recorded growth in other channels including online sales (10%).

On the home shopping channel, it grew by 115% compared to the previous year.

This was attributed to sales of Clio Magnet Pact cushion foundation as well as its health food products, which increased by 55%.

The company has been expanding its presence in the functional health food space. It set up a subsidiary in 2021, Clio Lifecare, with the brand TrueRX.

Global advancements​

The company also recorded robust growth in international markets with growth of 27% to KRW41.9bn (USD30.6m).

Most notably, South East Asia saw a growth rate of 129%, led by markets like Singapore and Vietnam.

CosmeticsDesign-Asia​ previously reported​ that Vietnam was emerging as major growth market for South Korean beauty brands.

According to e-commerce firm Shopee, K-beauty orders to Vietnam have increased 5.2 times from 2021 to 2023. Furthermore, transaction amounts increased 4.9 times.

In North Asia, China grew by 50% driven by the popularity of the brand’s eyeshadow palettes, which the company dubbed as “category killers”​ in the market.

In Japan, sales increased by 15% driven by the band’s expansion into offline channels and its localisation efforts.

This follows the news that the firm had acquired two Japanese distributors, including Doowon, its original partner that facilitated Peripera's expansion into Japan in 2013.

The firm also bought cosmetics import agency Kiwami in a USD6m deal.

Through these acquisitions, the firm is set to establish a Japanese corporation with the aim of improving profitability by streamlining operations.

The company reported sales growth of 48% in North America, led by the popularity of Goodal and its Green Tangerine Vita C Dark Spot Care Serum, which drove the firm to launch the cream products of the range.

Yoon Sung-hoon, vice president of Clio, said the firm was aiming to continue on this growth trajectory while expanding its international presence.

“We will continue to grow through differentiated product launches and marketing that meet global consumer demand.”​