Amorepacific Q3 Operating Profit 33 Billion KRW...36.2% Decrease YoY (Comprehensive)

Sales of 1.0218 trillion won... 15.9% decrease compared to last year

[Asia Economy Reporter Moon Hyewon] Amorepacific Group received a disappointing report card in the third quarter of this year due to the slowdown in the Chinese consumer market and other factors.

Amorepacific announced on the 31st that its sales in the third quarter reached 936.4 billion KRW, a 15% decrease compared to the same period last year. Operating profit was 18.8 billion KRW, down 62.6% year-on-year, and net profit was 21.8 billion KRW, a 43.3% decrease.

During this period, the group's total cosmetics division sales amounted to 949.9 billion KRW.

The domestic business recorded sales of 587.1 billion KRW, down 18.6%, affected by sluggish duty-free channels. As sales in high-profit channels such as duty-free declined, operating profit also decreased. However, cosmetics sales through pure domestic e-commerce channels increased by more than 10%.

An Amorepacific Group official explained, “Sulwhasoo laid the foundation for a new leap forward with the global brand campaign ‘Sulwhasoo, Bloom Again’ and the launch of the ‘Yoonjo Essence Baekja Edition.’ Laneige provided a differentiated brand experience by releasing the second limited edition product in collaboration with ‘Maison Kitsun?,’ which drew explosive responses. Hera and Vital Beauty expanded sales through various marketing activities and new product launches, and Estra enhanced product competitiveness by launching the first pediatric medical device-certified product in Korea.”

Overseas business sales declined by 12.8% to 334.8 billion KRW due to the slowdown in Chinese consumption, leading to a drop in sales in the Asian region. However, excluding China, other Asian markets saw about 20% sales growth as major brands such as Sulwhasoo, Laneige, and Innisfree performed well.

Expectations rose as the performance in the North American market, which continued throughout the year, further expanded. The competitiveness of major brands strengthened, resulting in a 97% increase in total North American sales. In particular, Laneige ranked first in overall sales in the ‘Beauty & Personal Care’ category during the ‘Amazon Prime Day’ held last July, and in Europe, total sales grew by 60%, supported by the sharp sales increase of Laneige and strong sales of Innisfree.

Major subsidiaries saw most of their sales and profits grow due to strengthened brand and product competitiveness and strong online channel sales. Innisfree achieved sales growth and turned profitable as online sales expanded, centered on flagship products such as the ‘Retinol Cica Scar Ampoule.’ Etude’s overall sales slightly declined due to withdrawal from the duty-free channel, but operating profit turned positive thanks to improved channel mix.

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