Sales Reach 4.2599 Trillion KRW... Up 5.9% Year-on-Year
Domestic Sales Down 2.4%, Operating Profit Up 1.3%
Overseas Sales Surge 20.6%, Operating Profit Turns Positive
Amorepacific Group announced a surprise strong performance last year in the U.S. market. As a result of implementing a global rebalancing strategy, sales in the Americas region surpassed those in the Greater China region for the first time on an annual basis.
According to the Financial Supervisory Service's electronic disclosure system on the 6th, Amorepacific Group recorded an operating profit of 249.3 billion KRW and sales of 4.2599 trillion KRW last year. These figures represent increases of 64% and 5.9%, respectively, compared to the previous year.
By region, domestic business sales amounted to 2.157 trillion KRW, with an operating profit of 148.3 billion KRW.
The domestic business achieved solid growth in multi-brand stores (MBS) and online channels through the renewal of flagship products of major brands and the launch of new products.
However, sales declined by 2.4% year-on-year due to a continued drop in duty-free sales. Profitability in the domestic cosmetics sector improved, resulting in a 1.3% increase in operating profit.
Overseas business sales increased by 20.6% to 1.6789 trillion KRW, and operating profit turned positive to 104.2 billion KRW. This was largely due to strong growth centered around Kwon Seo-gu. Notably, for the first time in the group's history, the Americas region surpassed Greater China to become the largest overseas market in terms of sales.
In the Americas, sales grew 83% year-on-year thanks to high growth of key brands and the inclusion of COSRX. Leading brands such as Laneige and Innisfree achieved record-breaking results during Amazon's 'Black Friday & Cyber Monday (BFCM)' event.
In the Europe, Middle East, and Africa (EMEA) region, Laneige diversified its channels by entering the UK’s 'Boots' and 'ASOS', achieving triple-digit growth rates. Combined with the COSRX acquisition effect, total sales tripled.
In Asia, the performance of Greater China and other Asian regions contrasted over the year. In Greater China, sales fell 27% due to changes in the channel transaction structure of the Chinese subsidiary, but competitiveness was enhanced centered on Sulwhasoo and Ryo, laying the foundation for growth.
Conversely, in other Asian regions including Asia-Pacific (APAC) and Japan, sales increased by 33%.
Major subsidiaries worked to secure growth and profitability. Innisfree focused on strengthening competitiveness in high-performance functional products to enhance brand appeal, but sales declined due to channel portfolio shifts, leading to reduced operating profit. Etude expanded its customer base among the Zalpa generation and grew sales mainly through MBS and online channels, but overall sales decreased due to offline channel restructuring and operating profit fell due to increased marketing investments.
An Amorepacific official stated, "We are pursuing strategic directions to strengthen brand competitiveness, accelerate global rebalancing, enhance channel responsiveness, and prepare for future growth to achieve healthy sales growth and profitability."
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