Amorepacific Group Q1 Operating Profit Down 52%
- Chaileedo Press
- May 6, 2023
- 2 min read
Amorepacific Group, the Korean beauty giant released its 2023 Q1 results. The company reported 1009.1 KRW billion ($765.66 million) in revenue, with a decrease of 20.1% compared to 2022 Q1. The company’s operating profit in Q1 reached 81.6 KRW billion ($61.91 million), down 52.3% compared to the same period of last year.
Amorepacific Group, the Korean beauty giant released its 2023 Q1 results. The company reported 1009.1 KRW billion ($765.66 million) in revenue, with a decrease of 20.1% compared to 2022 Q1. The company’s operating profit in Q1 reached 81.6 KRW billion ($61.91 million), down 52.3% compared to the same period of last year.
Amorepacific Group’s subsidiary Amorepacific delivered 913.7 KRW billion ($693.27 million) in revenue, down 21.6% compared to 2022 Q1. Operating profit for Amorepacific reached 64.4 KRW billion ($48.86 million), saw a decrease of 59.3%.
In terms of domestic business, Amorepacific revenue down 25% in Q1. Travel retail channel revenue down by double digital and department store and multi-brand shop channel sales saw growth.
While for the overseas business, Amorepacific Q1 revenue declined 17% with Asia revenue down 27%. China accounts for over 50% of Amorepacific’s revenue and revenue for Amorepacific in China down over 40% in Q1. North America sales posted 80% growth driven by reinforcing major brand marketing. EMEA revenue increased 94% with strong sales growth from all brands.
In terms of brands performance, revenue for Innisfree were 66.7 KRW billion ($50.61 million), a year-on-year decrease of 7.1%. However, the brand's operating profit increased by 67.5% year-on-year to 5.7 billion KRW billion ($4.325 million), mainly due to the restructuring of product sales channels.
Etude House's revenue in the quarter increased by 8.8% year-on-year, and operating profit skyrocketed by 1746.2%. Etude House officially announced its exit from the Hong Kong market from April 24, 2023.
In addition, Espoir's operating profit in the first quarter increased by 184.4% due to the update of its domestic MBS channel. AMOS Professional is preparing to reinvest to increase brand awareness and has increased marketing investment, resulting in a 17.1% decrease in operating profit. OSULLOC's operating profit decreased by 51.3% due to increased investment costs in overseas expansion.
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