Amorepacific Q2 Operating Profit 5.9 Billion KRW... Returns to Profitability (Comprehensive)

Sales of 945.4 billion KRW in the same period... Slight decrease
Growth in multi-brand shops... Duty-free channel sluggish
Hera and Estra, both sales and operating profit up
North America sales up 105%... Led by Sulwhasoo and others

Amorepacific announced on the 26th that its consolidated operating profit for the second quarter of this year reached 5.9 billion KRW, turning to a profit compared to the same period last year.

[Photo by Amorepacific]

During the same period, sales slightly decreased to 945.4 billion KRW, while net profit rose to 19.3 billion KRW, turning positive.

Among Amorepacific brands, Hera and Estra stood out with increases in both sales and operating profit. The Daily Beauty segment, including Illiyoon and Labo H, improved profitability and turned profitable. Among subsidiaries, Etude achieved more than double the operating profit along with sales growth.

Amorepacific’s domestic business recorded sales of 555 billion KRW, down 11.6% year-on-year due to a decline in duty-free sales. The Daily Beauty segment turned profitable based on a product portfolio restructuring, resulting in a 0.4% increase in domestic operating profit. The multi-brand shop channel continued its growth trend, but the duty-free channel remained sluggish.

In the luxury brand segment, Hera’s strong performance with increases in both sales and operating profit was notable. Sulwhasoo focused on rebranding efforts such as department store store renovations, and Primera, which actively launched new products, saw sales growth mainly through multi-brand shops. In the premium brand segment, Estra, which maintained the number one market share in Olive Young’s derma category, recorded double-digit sales growth. Laneige saw increased multi-brand shop sales centered on its renewed ‘Neo Cushion’ and core skincare products, while IOPE’s new product ‘Retinol Super Bounce Serum’ also showed strong sales.

Amorepacific’s overseas business recorded sales of 372.3 billion KRW, up 27.5% year-on-year, driven by high growth in the North American, European, and Japanese markets. Operating losses also narrowed due to increased sales in Asia. In particular, China achieved over 20% sales growth overall, thanks to Laneige’s strong performance.

In North America, where sales increased by 105%, key brands such as Sulwhasoo and Laneige led the growth. Laneige provided differentiated customer experiences, including operating its first virtual store, while Sulwhasoo enhanced brand awareness through strengthened rebranding campaigns. Innisfree also contributed to growth with expanded sales driven by the strong performance of the ‘Daily UV’ and ‘Green Tea Line’. In the EMEA region, where sales increased by 123%, Laneige’s activities stood out. Growth was led by active moves such as entering the UK luxury beauty multi-shop ‘SPACE NK’ and Sephora in the Middle East. Additionally, Japan expanded its customer base by broadening retail channels and hosting the ‘Amorepacific Festival,’ boosting sales by more than 30%.

Major subsidiaries such as Innisfree, Etude, and Espoir showed continued overall sales growth and increased marketing investments.

Meanwhile, Amorepacific Group recorded sales of 1.0308 trillion KRW and operating profit of 11.7 billion KRW in the second quarter. Sales increased by 0.4% year-on-year, and operating profit turned positive. Starting this month, Amorepacific Group has entered a new management cycle and plans to pursue management strategies focused on ‘enhancing brand value,’ ‘global rebalancing,’ and ‘customer-centric management.’

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