South Korean skincare, also known as K-beauty, has taken the world by storm. Two who have at least managed to ride the wave and capitalize on the trend are brothers Emil and Jakob Göras. Their e-commerce business, which recently changed its name from Goeras Beauty & Cosmetics AB to Korean Beauty Group AB, shows an improbable growth journey.
The company has now submitted its annual report for an extended financial year of 18 months (from January 2025 to June 30, 2026). Turnover amounts to 86 million Swedish krona. This represents a massive increase of 215 percent compared to the previous financial year, which, however, only covered 12 months and totaled 27.3 million Swedish krona.
In the management report, the company simply states that the sharp increase in sales is due to "higher demand for the company's products."
The distribution on different markets is not disclosed, but according to their website, they offer delivery to, for example, Denmark, Belgium and Bulgaria and have express shipping to the USA.
Profitability Soars
But it is not only sales that are pointing sharply upwards. Profitability is also joining the ride.
Operating profit makes a significant leap and lands on a solid 6.1 million Swedish krona, which is an increase of 216 percent from previous 1.9 million.
So, what do you do when the cash registers are ringing and business is booming? The Göras brothers have chosen a defensive and secure path forward. The strong balance sheet has been used to tidy up the finances.
The e-commerce company has chosen to fully amortize its long-term debts, which at the end of 2024 amounted to 1.6 million Swedish krona. That item now stands at zero.
At the same time, the company has also taken the opportunity to reduce short-term bank debts from 1.2 million to 900,000 Swedish krona.
Growing Team
As orders have poured in and the warehouse has needed to be emptied at a rapid pace, the company, which is based in Halmstad, has also been forced to expand its workforce. During the current 18-month period, the company employed an average of eight people, which is three more than in 2024.
The company is wholly owned by the parent company EMSTJA Group Holding AB.