Amorepacific hits record overseas

Amorepacific Group achieved an overseas revenue record in 2019, though operating profit outside of the Korean market fell.

Overseas revenue for the beauty company totaled 2.08 trillion won ($1.76 billion) in 2019, up 6 percent on-year, according Amorepacific’s results announcement issued Wednesday. It was the first time that number broke 2 trillion won.

“The U.S. market played a big role in pulling up overseas sales,” Amorepacific said in a statement, adding that sales of the Laneige skin care products were growing fast. In addition, Innisfree and Primera were first carried in U.S. Sephora stores last year.

The company still does most of its overseas business in Asia, with China leading. Revenue in that region was up 5 percent to 1.96 trillion won. Revenue from the European market slipped 24 percent due to a sluggish French economy to 21.9 billion won but was offset by earnings from China and the United States. Revenue in the U.S. market totaled 93 billion won.

Hefty investments in foreign markets reduced overseas operating profit - down 49.7 percent on-year to 104 billion won. Most expenditures were related to marketing, a company spokesman explained.

Amorepacific said it will maintain investments to expand sales channels and marketing in foreign markets in 2020, in order to strengthen the “base for a performance turnaround.”

The mixed results overseas were reflected in group performance in 2019: Amorepacific Group’s annual revenue increased 3.4 percent on-year to 6.28 trillion won, while operating profit slipped 9.3 percent to 498.2 billion won.

Revenue of Innisfree and Etude House, the company’s one-brand stores, fell once again as Korean beauty consumers turned to multi-brand beauty stores, like Olive Young.

Innisfree sales fell 8 percent on-year and operating profit by 22 percent in 2019. Etude House revenue fell 18 percent, but its operating loss was less than in the previous year. Espoir, a one-brand store specializing in cosmetics, turned to profit in 2019.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]