Amorepacific Soars Again.. 555% Surge in Operating Profit in Q2

[Financial News] Amorepacific Group saw a significant improvement in performance in the second quarter of this year due to the simultaneous growth of domestic and overseas businesses. 
The holding company, Amorepacific Holdings, announced on the 1st that its operating profit for the second quarter of this year was provisionally tallied at 80.1 billion KRW, a 555.5% increase compared to the same period last year (12.2 billion KRW). Sales increased by 8.9% to 1.095 trillion KRW, but net profit decreased by 90.5% to 50.8 billion KRW.
A representative of Amorepacific Holdings explained, "The performance growth was driven by the domestic and international market success of the group's major brands and core products."
The operating profit of the main subsidiary, Amorepacific, increased by 737 billion KRW, a 1673% increase.
A representative of Amorepacific Holdings stated, "The improvement in operating profit is largely due to the stabilization of the business in the Greater China region," adding, "The base effect also played a role as we recorded a surplus for two consecutive quarters."
The operating profit of the overseas business increased by 36 billion KRW, a 611% increase, and the operating profit of the domestic business increased by 40.2 billion KRW, a 164% increase. Sales increased by 1.05 trillion KRW, an 11.1% increase. Domestic business sales increased by 553.6 billion KRW, an 8.2% increase, and overseas business sales increased by 436.4 billion KRW, a 14.4% increase. Net profit decreased by 90.5% to 50.8 billion KRW.
A representative of Amorepacific Holdings explained, "In Korea, the daily beauty business, including cosmetics, shampoo, and body wash, showed balanced results," adding, "In the Western markets, high growth continued, and there was an improvement in business transaction structure in the Greater China region."
According to Amorepacific Holdings, the domestic business saw results from efforts to enhance market responsiveness of key products such as Sulwhasoo, Primera, and Iope, and brands like Mamonde and Hanyul showed growth in multi-brand shops (MBS) and online channels. Functional product sales of brands like Mise-en-scène, Illiyoon, and Happy Bath also saw high growth.
The overseas business saw sales increase in both the Western and Greater China regions.
Sales in the EMEA (Europe, Middle East, Africa) market increased by 18%, driven by strong sales of Laneige and Innisfree in Europe, centered around the UK. In the Americas, sales increased by 10% due to the launch of new brands such as Aestura and Hanyul.
The Greater China market recorded an operating profit surplus for two consecutive quarters, based on the improvement in business transaction structure, and sales also increased by 23%. Sales in other Asian markets increased by 9%.
Looking at the operating profit of major subsidiaries, Etude increased by 2.8 billion KRW, a 196% increase, and Amos Professional (2.5 billion KRW) and Innisfree (2.3 billion KRW) increased by 14% and 81%, respectively. Espoir decreased by 600 million KRW, a 6% decrease, but Osulloc remained similar to the same period last year at 2.7 billion KRW.
A representative of Amorepacific Holdings stated, "We are continuously pursuing a global rebalancing strategy," adding, "We are strengthening distribution partnerships focused on key growth areas in overseas markets and trying various business models to secure global growth momentum."

clean@fnnews.com Lee Jeong-hwa Reporter