AmorePacific Reports Operating Profit of 160.3 Billion KRW in H1, Down 46.9% YoY

[Asia Economy Reporter Moon Hyewon] Amorepacific Group announced through its earnings disclosure on the 28th that its sales for the first half of this year reached 2.2892 trillion KRW, and operating profit was 160.3 billion KRW. Compared to the same period last year, sales decreased by 14.9% and operating profit by 46.9%, respectively.

On a consolidated basis, the operating loss for the second quarter of this year was 10.9 billion KRW, turning to a deficit compared to the same period last year. Sales for the second quarter were 1.0264 trillion KRW, down 21.3%. During the same period, a net loss of 26 billion KRW was recorded, turning net profit into a deficit as well.

Major subsidiary Amorepacific also posted losses in the second quarter. Amorepacific recorded operating and net losses of 19.5 billion KRW and 37.2 billion KRW, respectively, in the second quarter of this year, turning both operating profit and net profit into deficits. Sales were preliminarily estimated at 945.7 billion KRW, down 19.6%.

Domestic business in the second quarter achieved sales of 627.8 billion KRW, down 15.4% compared to the previous year. Although growth continued in online channels, overall performance declined due to sluggish duty-free channels caused by the lockdown in China.

Overseas business also showed weakness in the Asia region, which accounts for a large proportion, due to the lockdown in China, recording sales of 297.2 billion KRW, down 33.2%. However, in the North American market, where Laneige and Sulwhasoo expanded their brand power following the first quarter, sales increased sharply by 66%, continuing rapid growth. In particular, Laneige contributed to sales expansion by launching the Water Bank campaign in collaboration with Sydney Sweeney, and Sulwhasoo entered new e-commerce channels such as Amazon. In Europe, Laneige showed strong sales through Sephora and e-commerce channels, and Guerlain Paris’s domestic sales recovered growth, resulting in an overall sales increase of 15%.

Major subsidiaries showed overall sales growth and profit improvement through growth in online channels and strengthening of product portfolios. Etude, which performed well in online and MBS channels, Espoir, which saw growth in the face makeup category, and Amos Professional, which reorganized its portfolio focusing on Ayunchae treatments, all achieved growth in both sales and operating profit.

On the other hand, Innisfree’s overall sales declined despite growth in online channels due to sluggish duty-free channels.

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