Amorepacific profit drops on overseas expansion

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Amorepacific profit drops on overseas expansion

Published: 31 Jul. 2019, 20:07

Amorepacific Group posted 110.4 billion won ($99 million) in operating profit in the second quarter, a 35.2 percent dip on-year on business expansion abroad and the marketing costs that entailed, the cosmetics maker announced Wednesday. Its sales in the same period inched up 1 percent on-year to 1.57 trillion won.

The group’s luxury brands, including Sulwhasoo, Hera and Primera, drove the growth of its sales, while the online sales of premium brands like Iope and Laneige saw an improvement thanks to the introduction of new products targeting millennials, according to the group.

Its road-shop brands like Innisfree and Etude struggled.

Innisfree posted 19.2 billion won in operating profit, a 29 percent drop on-year, while Etude continued to face operating losses, although the amount of loss has fallen.

The cosmetics maker plans to improve sales by expanding the fan base by offering a range of experiences in the second half of the year.

By Jin Min-ji