Record beauty profits power Cosmax’s European debut with Italian production base

South Korean cosmetics manufacturer Cosmax posted record revenue and profit for 2025 and, on the same day, announced establishing a European foothold with its first production base in Italy. The timing links strong financial momentum with geographic expansion. 

The original design manufacturer (ODM) reported ₩2.3988 trillion (US$1.66 billion) in revenue and ₩195.8 billion (US$135.65 million) in operating profit for 2025. Both figures mark all-time highs for the company, which it attributes to steady growth in South Korea, a rebound in China, and renewed strength in the US.

Alongside the financial gains, Cosmax has signed a deal to acquire a 51% stake in Italian cosmetics ODM Keminova. The deal gives Cosmax a strategic foothold in Europe’s “Beauty Valley,” near Milan.

“The acquisition of Keminova is more than merely securing a physical production base — it is a strategic fusion of Europe’s long-established cosmetics manufacturing expertise with the innovative capabilities of the world’s largest ODM company,” says Lee Byungjoo, CEO of Cosmax BTI, the holding company.

The move places a Korean manufacturer directly inside Europe’s production ecosystem at a time when countries like France, traditionally the globe’s beauty powerhouse, are facing competitive pressure from Asian imports.

“By integrating the strengths of both companies, we will rapidly boost our presence in the European market and further solidify our position as the global number one cosmetics ODM,” Lee adds.

Financial foundation

Cosmax’s reported revenue of ₩2.3988 trillion (US$1.66 billion) marks a 10.7% year-over-year increase. The company’s ₩195.8 billion (US$135.65 million) operating profit indicates an 11.6% increase from the previous year.

Cosmax’s results highlight how K-beauty’s global rise is now driving manufacturing growth beyond Asia.Despite China’s rebound and the US’s return to growth, South Korea remained the group’s financial engine. Cosmeax’s Korea subsidiary generated ₩1.5264 trillion (US$1.06 billion) in revenue, up 12.4%, and delivered ₩154.6 billion (US$107.12 million) in operating profit. 

The company reports strong global demand for K-beauty products, including gel masks, creams, and sun care, with hair and body categories showing traction.

The China subsidiary reported ₩632.7 billion (US$438.55 million) in revenue, up 10.2%, as local consumption weakened amid C-beauty’s growing domestic popularity. Cosmax attributes its recovery in China to client diversification and rising exports to Southeast Asia.

Meanwhile, Thailand posted 68.2% revenue growth to ₩73.2 billion (US$50.77 million), mainly due to strong demand for sun care products, while Indonesia declined 13.7% due to political and consumer weakness.

Cosmax’s US subsidiary recorded ₩132.6 billion (US$91.92 million) in annual revenue and saw Q4 revenue surge 24.2% year-over-year. The company cited new client inflows through its California office as boosters.

A company official says Cosmax will pursue joint growth with Korean indie brands in the year to come, while actively responding to new global markets.

All eyes on Europe

Amid its financial reporting, Cosmax announced that it signed a share purchase agreement to acquire a 51% stake in Keminova, an Italian cosmetics ODM. Keminova is located about 100 kilometers from Milan, inside Europe’s “Beauty Valley,” where many global cosmetics brands and suppliers cluster.

The Italian company recorded approximately €10.5 million (US$12.38 million) in sales in 2025, and is said to manufacture around 20 million skin care units annually. Keminova specializes in derma cosmetics, hair care, and medical devices. The company serves various skin care brands and pharmaceutical companies in Italy.

Cosmax’s acquisition of a 51% stake in Italy’s Keminova gives the Korean ODM its first European manufacturing base.The acquisition gives Cosmax its first production base in Europe, adding to its existing bases in the US, South Korea, China, and other Asian markets.

Cosmax intends to combine its K-beauty formulation technology and business strategies with Keminova’s established European client networks and knowledge of local manufacturing trends. 

The Korean company also plans to link Keminova to its global R&D network, comprising around 1,100 researchers, which could accelerate the development of cosmetics that align with European trends. 

By manufacturing in Europe, Cosmax can reduce logistical complexity, respond more quickly to local brands, and compete more directly with European ODMs on price, speed, and innovation.

The move could increase competitive pressure on European manufacturers, especially mid-sized players that lack global scale or cost advantages. However, European brands may benefit from access to K-beauty innovation without having to import from Asia, which could, in turn, shift their bargaining power in the cosmetics supply chain.

Cosmax hopes to secure the necessary approvals from the Italian government by March to finalize the transaction.