AmorePacific operating profit up more than 30%

By Lucy Whitehouse

- Last updated on GMT

AmorePacific operating profit up more than 30%

Related tags Brand Marketing

Korean beauty giant AmorePacific has record an operating profit of 30.7% for the first quarter, thanks to sales growth both domestically and abroad, according to the company.

The robust performance means AmorePacific’s operating profit brought in W419.1 billion during Q1 2016, up from W320.7 billion from last year.

The company’s beauty subsidiaries, including Amos Professional, Etude and Innisfree, saw sales jump collectively by 23.7% year on year, equating to an operating profit of just under 28%.

Although a substantially smaller part of the enterprise, AmorePacific’s non-beauty subsidiaries grew 784% year on year, bringing in an operating profit of 5.8 billion, up from 0.7 billion last year.

International presence

In its earnings report, the company has highlighted “robust sales​” across Asia for its five major champion brands and also singled out increased sales in the US, thanks to regional and channel expansion.

Its performance in the EU, however, has proven less successful, and the company states this is due to market conditions and company investment in its channels.

Revenue and profit declined in Europe due to sluggish perfume market, weak consumer spending and channel restructuring​,” the report details.

Domestic performance

The company splits its operations across its two key sectors of luxury and premium, and states that strong performance across both has contributed to its healthy growth.

For luxury, the company states that the contributing factors were “enhanced luxury brand image and sustained quality growth through the launch of Sulwhasoo's flagship store & Hera's sponsorship for Seoul Fashion Week, and solid sales growth due to stronger sales of core brands through the travel retail channel.​”

Within its premium operations, AmorePacific “initiated diverse marketing campaigns, strengthened brand equity through innovative new products, improved customer convenience through Aritaum’s offline and online retail competency, established the groundwork for quality growth for the digital channel.​”

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