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

Cosmetics manufacturer Kolmar Korea posted its highest-ever quarterly revenue in the second quarter, driven by robust domestic demand and growth overseas.

The original design manufacturer (ODM) said Friday that consolidated sales in the April-June period rose 10.7 percent to 730.8 billion won ($526 million) in the same period from the previous year. Operating profit climbed 2.4 percent to 73.5 billion won. It is the first time quarterly revenue has surpassed the 700 billion won mark.

In the first half, revenue rose 12.1 percent on year to 1.38 trillion won and operating profit jumped 28.1 percent to 133.4 billion won.

Revenue from the Korean unit notably increased 11 percent to 328.1 billion won in the second quarter, with operating profit also up 11 percent to 49 billion won.

The company credited the growth to "expanding global exports for indie beauty brands and continued strength in sun care product sales."

U.S. revenue grew 37 percent on year to 18.4 billion won, but the unit posted a 200 million won operating loss. Kolmar said it expects improvement after starting operations at its second plant in Pennsylvania in June, which can produce up to 300 million units annually and will support new orders from global brands.

Canadian sales fell 21 percent to 10 billion won, but the unit swung to an operating profit of 300 million won.

Kolmar said it is focusing on securing new orders in the second half, but noted that tariff negotiations between the United States and Canada could impact earnings.

Meanwhile, Kolmar BNH, the group's health supplement subsidiary, reported separate sales of 128.7 billion won and operating profit of 10.5 billion won for the second quarter, up 1.8 percent and 27 percent on year, respectively.

Compared to the previous quarter, sales rose 12 percent, and operating profit surged 191 percent.

In the first half, however, operating profit fell 11.8 percent to 14.1 billion won from a year earlier.

"The results reflect efforts to diversify revenue sources and strengthen business fundamentals," a Kolmar BNH spokesperson said, adding that increased ODM orders from smaller clients and a profitability-focused overseas strategy had offset weaker sales to major customers.

The strong earnings come amid a messy feud between the owning family members over corporate management.

Kolmar Holdings Vice Chairman Yoon Sang-hyun previously replaced the management of Kolmar BNH, led by his younger sister Yoon Yea-won, citing declining profits.

The supplement maker's operating profit fell from 95.6 billion won in 2020 to 23.9 billion won last year, and its share price slid from the 70,000-won range to the 10,000-won level.

Yoon Yea-won argued the downturn was "temporary," noting that Kolmar BNH had posted record consolidated revenue of 615.6 billion won in 2023, her first year as CEO, and that restructuring efforts are now bearing fruit.

She said the company's recent results prove that profit-focused reforms are taking effect despite the loss of sales from key clients.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.