Sales climb 8.9% to 1.2 trillion won, marking ninth consecutive quarter of growth
Amorepacific logs operating margin above 10% for third straight quarter
Amorepacific posted growth in both sales and operating profit in the third quarter of this year, driven by improved profitability in its domestic business and expansion in overseas markets including North America and Japan.
According to DART filings released Friday, Amorepacific recorded consolidated operating profit of 130.1 billion won ($97.4 million) in the third quarter, up 24.7% from the same period last year.
Sales rose 8.9% to 1.21 trillion won over the same period, marking the ninth consecutive quarter of revenue growth for the group.
Net profit fell 13.3% to 72.2 billion won, but the operating margin improved 1.4 percentage points to 10.8% from 9.4% a year earlier.
Amorepacific attributed the earnings growth to North American market gains by key brands including Aestura and Innisfree, expanded sales in overseas markets such as Japan and India, and improved profitability in its domestic operations.
Core subsidiary Amorepacific posted an operating margin above 10% for the third consecutive quarter. Operating profit rose 25.4% year-on-year to 115.2 billion won in the third quarter, while sales climbed 11.1% to 1.13 trillion won. Net profit declined 14.3% to 58.5 billion won.
The domestic business saw sales rise 11% to 620.5 billion won and operating profit surge 42% to 84.6 billion won, improving both scale and profitability.
Strong sales from key brands including Sulwhasoo, Hera, Aestura and Illiyoon, along with growth in online shopping, multi-brand store and duty-free channels, contributed to the improvement.
Sulwhasoo achieved double-digit growth, buoyed by a 60th-anniversary campaign for its Jaum Serum Cream and strong performance across major retail channels. Illiyoon and Hera also posted sales gains centered on their core products.
The overseas business recorded sales of 495.5 billion won and operating profit of 48.5 billion won, up 12% and 14%, respectively, from the same period last year.
In North America, Aestura more than doubled its sales with balanced growth across online and offline channels including Sephora and Amazon, while Innisfree grew more than 50% on the back of strong demand for its green tea and sun care products.
In Japan, Aestura and COSRX each more than doubled their sales, and Hera posted growth of more than 90%.
In India, overall sales rose more than 60%, driven by growth from key brands such as Laneige and the new market entry of Mamonde.
In the Europe, Middle East and Africa region, COSRX sales grew more than 30%, and Aestura secured new listings in major retail channels in the United Kingdom and Nordic markets.
Beauty brand subsidiaries including Innisfree, Etude, Espoir and Amos Professional saw sales fall 12% to 103.2 billion won and operating profit drop 29% to 5.2 billion won, as the companies restructured their distribution channels.
Other subsidiaries including Osulloc posted a 4% increase in sales to 50 billion won and a 52% jump in operating profit to 8.8 billion won, lifted by strong chuseok gift set sales and higher store foot traffic.
"We are strengthening a multi-brand growth framework for our global business while cultivating new global growth pillars in derma beauty, clinical skin care and hair care," Amorepacific said. "We plan to continue building a sustainable growth foundation by responding swiftly to changes in customers and markets driven by social media, e-commerce and AI."
spa@heraldcorp.com
