Amorepacific Group Reports Operating Profit of 271.9 Billion KRW Last Year, Down 23.7% YoY (Comprehensive)

Sales of 4.495 Trillion Won... 15.6% Decrease

Amorepacific Group announced on the 1st that its operating profit last year was 271.9 billion KRW, a decrease of 23.7% compared to the previous year. During the same period, sales dropped 15.6% to 4.495 trillion KRW, and net profit fell 28.5% to 129.3 billion KRW.

The domestic business of the main affiliate, Amorepacific, recorded sales of 2.5813 trillion KRW, down 16.1% year-on-year due to a decline in duty-free sales. Operating profit also decreased by 27.3%.

However, the cosmetics sector continued to show growth in online performance, with a number one market share in the domestic e-commerce market. In the daily beauty segment, where the premium line's share expanded, operating profit increased through improved profitability. Sulwhasoo strengthened its position as a global luxury brand by launching the global brand campaign "Sulwhasoo, Bloom Again," and Laneige enhanced its competitiveness by introducing innovative new designs and customized services such as "Bespoke Neo."

Last year, the group's total cosmetics sales amounted to 4.1673 trillion KRW.

Amorepacific's overseas business recorded sales of 1.4935 trillion KRW, down 17.1% year-on-year due to a decline in sales in the Asian region. It was explained that the repeated resurgence of COVID-19 in China throughout the year had a significant impact. However, in the ASEAN region, major brands such as Sulwhasoo and Laneige performed well, maintaining solid growth.

In North America, major brands including Sulwhasoo, Laneige, and Innisfree continued to grow, with total sales increasing by 83%. The acquisition of the U.S. luxury clean beauty brand "Tata Harper" was also noted as establishing a mid- to long-term growth engine. In Europe, Laneige grew sharply centered on online and multi-brand shops, increasing total sales by 37%. Looking at the fourth-quarter results alone, North American sales rose by 99% and European sales by 69%, far exceeding the annual growth rate.

An Amorepacific official stated, "To overcome the challenging business environment last year, including the slowdown in Chinese consumption, we enhanced the value of major brands, diversified global markets such as North America and Europe, and reorganized the distribution portfolio centered on online platforms. As a result, domestic online channel sales increased, and overseas, high sales growth was achieved in the North American market." He added, "Major subsidiaries showed improvements in sales and profits through strong sales of premium functional products and innovation in the online-centered distribution structure."

Meanwhile, Amorepacific Group's operating profit for the fourth quarter of last year was 57 billion KRW, an increase of 122.9% compared to the same period in 2021. Sales and net profit for the same period were recorded at 1.0878 trillion KRW and 24.6 billion KRW, respectively.