AmorePacific 1Q Sales Down 9.0% Amid COVID-19 Resurgence

Operating Profit of 171.2 Billion KRW... 13.4% Decrease Compared to Previous Year

[Asia Economy Reporter Moon Hyewon] Amorepacific, which faced difficulties due to unstable domestic and international environments such as the resurgence of COVID-19, posted poor results for the first quarter of this year.

Amorepacific Group announced on the 28th that it recorded sales of 1.2628 trillion KRW and operating profit of 171.2 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 9.0% and operating profit fell by 13.4%.

The main affiliate, Amorepacific, recorded sales of 1.165 trillion KRW, down 7.0% year-on-year. Operating profit closed at 158 billion KRW, down 10.4%. Domestic business sales and operating profit were 732.8 billion KRW and 112 billion KRW, down 9.9% and 10.6%, respectively. Overseas business posted sales of 419.9 billion KRW, down 6.1%, and operating profit of 42.1 billion KRW, down 19.5%.

In the domestic market, online sales grew by more than 20%, but overall sales declined due to a drop in duty-free sales, and operating profit also decreased as marketing expenses expanded, according to Amorepacific.

Luxury brands such as Sulwhasoo and Hera saw double-digit growth in online sales but experienced a decline in duty-free sales, while premium brands also increased online sales but saw a decrease in overall sales.

Daily beauty brands increased online sales centered on premium lines, but offline sales declined due to portfolio restructuring, resulting in an overall sales decrease.

In overseas markets, sales in the Asian region declined due to the resurgence of COVID-19, leading to decreases in both overall sales and operating profit. Sales in China dropped by about 10%. However, in the North American market, key brands such as Sulwhasoo and Laneige performed well, achieving 63% sales growth. In Europe, overall sales declined due to a decrease in perfume brand sales. Laneige increased sales mainly online, enhancing brand competitiveness in the European market.

Among subsidiaries, Innisfree saw a decline in duty-free sales, resulting in decreases in both overall sales (-19.3%) and operating profit (-64.2%).

Etude's sales fell by 7.3% due to a decrease in road shop stores and duty-free sales but turned profitable.

Espoir expanded both sales and operating profit by performing well in multi-brand shops and online with new products in the face makeup category, and also achieved good results in the Japanese direct purchase market.

O'Sulloc's overall sales increased by 40.0% due to strong sales of Lunar New Year gift sets and premium tea sets, and operating profit rose by 156.8% as the proportion of online sales increased.

An Amorepacific Group official said, "We faced difficulties in the first quarter due to unstable domestic and international environments such as the resurgence of COVID-19," adding, "Nevertheless, we continued growth in online channels and focused on securing competitiveness by launching innovative new products."

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