Strong Domestic and Overseas Growth: Amorepacific Group Operating Profit Surges 556% Year-on-Year

Amorepacific's Operating Profit Soars by 1,673%
Sales in Greater China Market Grow 23% Amid Strong Performance in the Americas and Europe

Amorepacific Group recorded an operating profit of 80.1 billion KRW in the second quarter, marking a 556% increase compared to the same period last year. This remarkable growth was primarily driven by the outstanding performance of its main subsidiary, Amorepacific, in both domestic and overseas markets.

The exterior view of Amorepacific headquarters.

According to the Financial Supervisory Service's electronic disclosure system on August 1, Amorepacific Holdings' second-quarter sales and operating profit reached 1.095 trillion KRW and 80.1 billion KRW, respectively, representing year-on-year increases of 9% and 556%.

The main subsidiary, Amorepacific, made a significant contribution to these results. Amorepacific's sales and operating profit soared to 1.005 trillion KRW and 73.7 billion KRW, showing jumps of 11% and 1,673% over the same period last year. Considering that the securities industry had estimated Amorepacific's sales and operating profit at 1.0142 trillion KRW and 73 billion KRW, the actual results were in line with projections.

Both domestic and overseas divisions saw sharp increases in sales and operating profit. In the domestic division, sales reached 553.6 billion KRW and operating profit was 40.2 billion KRW, up 8.2% and 164% year-on-year, respectively. In the overseas division, sales and operating profit surged to 436.4 billion KRW and 36 billion KRW, marking increases of 14.4% and 611% over the same period last year.

In the domestic market, both the cosmetics (luxury and premium) and daily beauty segments delivered strong results. The luxury segment's growth rate exceeded 17%. Although this was partly influenced by the migration of the IOPE brand from premium to luxury, intensified marketing focused on key products such as Sulwhasoo's 'First Care Activating Serum' and Primera's 'Vitatinol Serum & Mask' also contributed to the sales increase. In the premium segment, which includes brands such as Hanyul, Mamonde, and Laneige, sales grew mainly through multi-brand shop (MBS) channels, while the brand 'Be Ready' launched a Daiso-exclusive line to expand its customer base. However, due to the reclassification of IOPE, sales in this segment decreased by 17%.

The daily beauty segment (including Mise-en-scene, Illiyoon, Ryo, and Happy Bath) recorded a growth rate close to 12%. The expansion of MBS channels and increased sales through e-commerce contributed significantly to the growth of the domestic division.

Overseas, sales increased in all regions, including the Americas, Europe·Middle East·Africa (EMEA), and Asia. In the Americas, core brands Laneige and Innisfree achieved high growth, while newcomers Hanyul and Aestura entered the market, resulting in an overall sales increase of 10%. The EMEA market saw a sales growth rate of 18%. Laneige and Innisfree recorded robust sales across Europe, especially in the UK, and COSRX began securing new channels in Germany, Italy, and France.

In the Greater China market, sales growth reached 23% during the same period. While the low base effect from last year's online channel inventory adjustment played a role, the launch of new products from Sulwhasoo, Ryo, and Laneige also positively impacted sales. In Japan and other Asian regions, the sales growth rate was recorded at 9%, with notable growth from major brands such as Laneige and Aestura.

Key subsidiaries of Amorepacific Holdings, including Innisfree, Etude, Espoir, Amos Professional, and Osulloc, accelerated performance improvements by focusing on strengthening brand value. Innisfree, which is undergoing channel restructuring such as reducing road shops, saw its total sales (53.2 billion KRW) decrease, but operating profit soared by 81% to 2.3 billion KRW thanks to strategic marketing on e-commerce platforms. Etude attracted attention with products like 'Curl Fix Mascara' on online and MBS channels, resulting in sales and operating profit increases of 10% and 196%, respectively.