AmorePacific Group Q1 Operating Profit Down 52.3% (Comprehensive)

Sales Down 20.1%... "Impact of Global Economic Recession"

Amorepacific Group announced on the 2nd that it recorded sales of 1.0091 trillion KRW and an operating profit of 81.6 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 20.1% and operating profit by 52.3%, respectively.

Amorepacific headquarters located in Yongsan-gu, Seoul.
[Photo by Amorepacific]

The total cosmetics sales of the group in the first quarter of this year amounted to 925.5 billion KRW.

The domestic business of Amorepacific, the group's main affiliate, recorded sales of 552.2 billion KRW, down 24.6% from the previous year due to sluggish duty-free channels. Operating profit also decreased by 60.8% due to the decline in duty-free sales and product portfolio restructuring.

Amorepacific's overseas business recorded sales of 349.4 billion KRW, down 16.8% year-on-year, due to a slowdown in Asian performance caused by a decrease in sales in China. During the same period, overall operating profit also fell by 36.9% due to the decline in Asian sales.

However, sales in North America increased by 80%, and sales in the EMEA (Europe, Middle East, Africa) region grew by as much as 94%.

In North America, Laneige showed continuous growth, especially due to strong sales of the ‘Lip Sleeping Mask’ travel kit and the effect of operating a pop-up store in LA. Sulwhasoo also strengthened customer communication by selecting Tilda Swinton as a global ambassador and partnering with the Metropolitan Museum of Art.

In the EMEA region, Laneige maintained high sales growth, and Goutal showed sales growth by conducting marketing for the 25th anniversary of the launch of ‘Petite Cherie.’ Additionally, in ASEAN, sales grew by strengthening core product marketing centered on Laneige and Innisfree, and in Japan, where the channel portfolio was expanded, customer responsiveness is also improving.

Major subsidiaries generally showed improvements in sales and operating profit. Despite a decline in sales, Innisfree’s operating profit increased by 67.5% as a result of profitability improvement activities such as channel restructuring. Etude’s sales grew due to strong sales of newly planned eye makeup sets and new products jointly developed with YouTuber Jo Hyojin. Espoir saw increases in both sales and operating profit thanks to focusing on domestic e-commerce and multi-brand shop channels. O’Sulloc maintained growth in direct online malls and global e-commerce channels, but overall sales and operating profit declined due to the renewal construction of the Jeju Tea Museum.

An Amorepacific Group official said, “We are attempting to restructure major brands, develop high-function and high-efficiency products, and expand new categories to build strong brands.” He added, “To advance our global business, we are focusing on expanding global success areas by pioneering new markets such as North America and Europe, while also strengthening profitability in existing Asian markets through brand portfolio restructuring and securing e-commerce business capabilities.”

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