AmorePacific Reports Operating Profit of 356.2 Billion KRW Last Year, Up 136.4% YoY

[Asia Economy Reporter Moon Hyewon] Amorepacific's operating profit increased by 136.4% year-on-year last year, driven by the growth in online sales proportion.

Amorepacific Group announced on the 9th that it recorded sales of 5.3261 trillion KRW and an operating profit of 356.2 billion KRW last year. Compared to the same period last year, sales increased by 8.0% and operating profit by 136.4%.

Amorepacific analyzed that the expansion of operating profit was due to the increase in the proportion of online sales and the effect of business structure improvement last year.

Domestically, online and duty-free channels led the overall sales growth trend. In overseas markets, operating profit improved due to the improvement of the luxury brand mix and store efficiency. Major subsidiaries strengthened digital marketing and continued sales growth in online channels. Last year, the group's total cosmetics sales amounted to 4.9237 trillion KRW.

The main affiliate, Amorepacific, achieved sales of 4.8631 trillion KRW, up 9.7% from the same period last year. Operating profit recorded 343.4 billion KRW, an increase of 140.1%.

Amorepacific's domestic business showed sales of 3.0757 trillion KRW, up 13.6%, and operating profit of 300 billion KRW, up 156.1%. Online sales grew by about 40%, and strong performance in the duty-free channel increased overall sales. Due to channel mix and improvement in operating profit of traditional channels, total operating profit increased by 156%. The luxury brand's growth in the online channel led the overall performance.

Overseas business recorded sales of 1.8023 trillion KRW, up 3.3%, and operating profit of 51.8 billion KRW, up 190.4%. Amorepacific attributed this to the advancement of luxury brands and the efficiency of offline stores. In the North American and European markets, sales growth was remarkable by diversifying brands and channels.

In particular, in China, Sulwhasoo, which fostered high-end lines such as Jaumsaeng and performed well in e-commerce channels, showed about 50% sales growth and stood out. However, in other Asian regions, overall sales declined due to store closures and shortened business hours caused by COVID-19. In North America, on-offline sales channels expanded, achieving significant sales growth. Online channels led growth with Laneige and Innisfree entering Amazon. In Europe, overall sales grew due to brand and channel diversification.

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