AmorePacific Group Q1 Operating Profit Down 67% (Comprehensive)

[Asia Economy Reporter Yujin Cho] Amorepacific Group announced on the 28th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 67.9 billion KRW, a 66.8% decrease compared to the same period last year.

During the same period, sales amounted to 1.2793 trillion KRW, down 22.1%, and net profit was 94.8 billion KRW, a 41.9% decline.

The decline in sales from major offline channels such as duty-free shops and department stores due to the spread of the novel coronavirus infection (COVID-19) led to the decrease in operating profit.

Both sales and operating profit of overseas businesses decreased due to the impact of COVID-19. Despite the adverse conditions caused by COVID-19, Amorepacific Group has continued to launch new products domestically and internationally to strengthen brand competitiveness and has focused on expanding customer experience through customized 3D mask technology.

They secured competitiveness in the anti-aging category by launching Sulwhasoo Seollin Eye Cream in China and Sulwhasoo Jinsul Myungjak line in Thailand, respectively.

Online sales grew through various brand activities on Tmall in China, and Innisfree took its first step into the Middle Eastern market through its first store in the UAE.

An Amorepacific Group official explained, "In the North American market, the growth of Laneige and Innisfree was remarkable in multi-brand shops and online channels," adding, "We were able to reduce the overall decline in overseas market sales by launching exclusive products for Sephora such as the ‘Laneige Lip Sleeping Mask, Netflix collaboration.’"

The official stated, "Despite the impact of COVID-19, we have secured competitiveness and laid the foundation for growth in digital channels," and added, "We plan to establish a foothold for performance improvement in 2020 by diversifying channel portfolios in overseas markets, developing customized cosmetics technology, and improving digital capabilities both domestically and internationally."

This content was produced with the assistance of AI translation services.