AmorePacific Group Reports 28.8 Billion KRW Operating Profit in 3Q, Down 12.7% YoY (Update)

Sales of 963.3 Billion KRW in the Same Period... 5.7% Decrease
Growth in the US, Europe, and Japan... Struggles in China

Amorepacific Group announced on the 31st that its operating profit for the third quarter of this year recorded 28.8 billion KRW, a 12.7% decrease compared to the same period last year. Sales during the same period decreased by 5.7% to 963.3 billion KRW.

[Photo by Amorepacific]

According to Amorepacific Group, sales grew in various overseas markets such as the United States, Europe, the Middle East, and Japan in the third quarter of this year. However, sales declined in duty-free, global e-commerce, and the Chinese market, leading to an overall decrease in group sales. Among Amorepacific brands, Laneige, Hera, Estra, Primera, Illiyoon, and Labo H performed well. Among subsidiaries, Etude continued its strong growth, achieving a threefold increase in operating profit.

The domestic business of the flagship affiliate Amorepacific recorded sales of 543.2 billion KRW, down 7.5% from the same period last year, due to declines in duty-free and global e-commerce channels. Overall domestic operating profit fell by 34.5% due to a decrease in operating profit in the cosmetics division and a turnaround to losses in the daily beauty division. On the other hand, sales in the multi-brand shop (MBS) channel grew by more than 50%, and sales in the pure domestic e-commerce channel also increased.

In the luxury brand sector, Hera and Primera showed remarkable performance with increased sales driven by strong sales in the MBS channel.

Amorepacific’s overseas business showed strong sales growth in the Americas, Europe, the Middle East, and Japan, but sales in Asia, centered on China, declined, resulting in sales of 317.7 billion KRW, down 4% year-on-year. Despite increased marketing expenses in the US, Europe, and Middle East regions, the reduction in losses in the Asian region led to an overall decrease in operating losses.

In the United States, which achieved 35% sales growth, key brands such as Sulwhasoo, which launched the ‘6th Generation Yunjo Essence,’ and Innisfree, which expanded its presence in the MBS channel, drove growth. Notably, Laneige launched at Sephora in Mexico, establishing a foothold for entry into the Latin American market.

In the Europe and Middle East regions, sales increased by 41%, centered on Laneige, which raised brand awareness through the ‘Water Bank’ campaign.

Additionally, in Japan, sales of Laneige and Innisfree expanded, and new brands such as Hera and Estra were launched, resulting in overall sales growth of more than 30% based on localization standards.

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