Wednesday, April 10, 2024

Corporate Policy

Amorepacific Group 2Q sales KRW 1,030.8 billion, 0.4% increase

Successful turnaround in operating profit... Increased sales in overseas markets such as China, Japan, North America, Europe, and the Middle East


Amorepacific Group recorded sales of 1.0308 trillion won and operating profit of 11.7 billion won in the last two quarters, sales increased by 0.4% year-on-year, and operating profit turned to black.


Amorepacific said in a public announcement today (26th), “In the second quarter of this year, sales increased in most overseas markets and overall profitability showed improvement. In particular, sales in North America and EMEA (Europe, Middle East, etc.) more than doubled compared to the previous year. Sales in China have grown, and sales in the Japanese market, which is expanding its customer base, have also increased significantly, raising expectations.”


△ Hera and Astra increased both sales and operating profit △ Daily beauty division, which was promoted by Illiyoon and Labo H, turned profitable with improved profitability △ Among subsidiaries, Etude showed 2 times growth in sales and operating profit The characteristics of quarterly performance were also revealed.


Domestic business, duty-free channel sales declined by 11.6%

Amorepacific's domestic business recorded only KRW 555 billion in sales, down 11.6% from the same period last year due to reduced sales in the duty-free channel. However, domestic operating profit increased by 0.4% as the daily beauty division succeeded in turning a profit based on product portfolio reorganization.


The multi-brand shop channel continued to grow, but the duty-free channel sales declined by double digits, contributing to the sluggishness. Overcoming the declining sales of all e-commerce channels, sales grew in the domestic e-commerce channels in the daily beauty sector, helping to improve operating profit.


Luxury sector comforts with 'Hera's good at fighting'

In the case of luxury brands, Hera's sales and operating profits both increased, and it is comforting. In the case of Hera's 'Sensual Nude Stain Tint', it recorded achievements such as rising to No. 1 in Kakao Gift Shop sales during the pre-release period.


△ Sulwhasoo focused on rebranding, such as renewing department stores, and △ Primera, which actively launched new products, also achieved sales growth centered on multi-brand shops.


In the premium brand category, Aestura, which maintained its No. 1 share in Olive Young’s Derma Cosmetics category, showed a double-digit increase in sales.


Overseas business, high growth in North America, Europe and Japan drives overall sales

Amorepacific's overseas business posted sales of KRW 372.3 billion, up 27.5% from the previous year, thanks to high growth in the North American, European, and Japanese markets. The operating loss was reduced based on the rise in sales in Asia. In China, sales increased by more than 20% thanks to the strong performance of Laneige.


Amorepacific said, “The rapid growth in North America and EMEA, where sales have increased more than twice, is eye-catching. In the EMEA region, which recorded a sales growth rate of 123%, Laneige was outstanding, and in Japan, it expanded its customer base by expanding retail channels and holding the Amorepacific Festival, raising sales by more than 30%.”


Major subsidiaries continued to show overall sales growth and increased marketing investment.


Entering a new management cycle under the banner of 'Grow Together'

The Amorepacific Group, which entered a new management cycle in July, put forward policies such as △ enhancement of brand value △ global rebalancing △ customer-oriented management under the slogan of 'Grow Together'.


We plan to focus on strengthening the brand core by clarifying the core values ​​of each brand, and create higher brand values ​​through the development of customer-friendly content and the enhancement of engine products.


It is also pushing for a reorganization of the global business landscape centered on regions with great growth potential. The idea is to strengthen distribution partnerships centered on newly established intensive growth areas and to continue to secure global growth engines by trying various business models.


We also put emphasis on the sector to develop the level of customer-oriented management one step further. To this end, it will implement new customer management (CRM) programs based on core customers and change the customer-oriented business structure.