Amore Pacific China Revenue Up 20% in Q2

Amore Pacific mentioned that half of its Asian business sales came from China, mainly due to the launch of new products from Sulwhasoo and Laneige.

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Today (July 27), Amore Pacific Group (hereinafter referred to as: Amore Pacific) released the second quarter of 2023 financial results. In the second quarter, Amore Pacific recorded sales of KRW 1,030.8 billion, up 0.4% year-on-year, and operating profit of KRW 1.17 billion, turned into profit.

On a brand-by-brand basis, Innisfree's sales declined 6.2% year-on-year to KRW67.5 billion in the second quarter of this year, but the brand lost KRW0.8 billion in operating profit, mainly due to the reorganization of product sales channels and the growth of marketing investment to enhance product competitiveness.

Thanks to effective cost saving measures, Etude's sales reached KRW29.2billion in the quarter, up 7.7% year-on-year. It is worth mentioning that Etude previously officially announced that it would withdraw from the Hong Kong market from April 24, 2023 onwards.

By region, Amore Pacific's sales in its domestic business in South Korea fell 12% to KRW555billion in the second quarter, while operating profit rose 0.4% to KRW368.8billion. I its domestic business in South Korea, the performance of its high-end beauty business, mid-range and high-end beauty brands and toiletries brands all declined, with high-end beauty declining by 24%.

Overseas sales rose 27% to KRW372.3 billion, with Asia up 14% and China up 20%. Amore mentioned that half of the sales in Asia came from China, mainly due to the launch of new products from Sulwhasoo and Laneige. The North American business was up a whopping 105%, with 123% in EMEA. Earlier, Amore Pacific had announced that it would acquire Natural Alchemy LLC, the parent company of U.S.-based luxury beauty brand Tata Harper, in a bet on the North American market.