Amorepacific reports ugly second quarter with 93% profit plunge

Amorepacific Group’s headquarters in Yongsan District, central Seoul. [AMOREPACIFIC GROUP]

Amorepacific Group’s profit plummeted in the second quarter as sales at offline stores, including duty-free shops, suffered as a result of the pandemic.

The cosmetics company behind Innisfree and Sulwhasoo announced on Friday 5.1 billion won ($4.3 million) of net profit in the second quarter, 93.1 percent down on year. Revenue came in at 1.18 trillion won, down 24.7 percent.

The decline was the result of a drop in sales at duty-free, department and other stores, the company noted in a statement Friday. It noted that online sales were strong.

Hand sanitizer sales contributed to the growth. Its sales and operating profit abroad fell, but the drop was somewhat offset by the online sales.

Innisfree and Espoir reported operating losses, while the operating profit of Amorepacific, which has Sulwhasoo, Laneige and Mamonde brands, fell 60 percent to 35.2 billion won.

Amorepacific Group said it plans to expand digital and customized services. The opening of the Iope Lab in May in Myeong-dong, central Seoul, is a part of this effort. Customers there can learn about their skin type based on their DNA and offer skin products that match their skin type.

On July 23, LG Household & Health Care reported 1.78 trillion won in sales, down 2.7 percent on year, and 438.8 billion won in net profit, up 0.3 percent on year.

Sales of its beauty business, which includes History of Whoo, declined 11.5 percent to 1.99 trillion won, while its operating profit was down 15.3 percent to 399.8 billion won. Sales at its home care and daily beauty division rose 26.4 percent to 941.5 billion won, and its operating profit jumped 79.7 percent to 128.5 billion won during the same period on the popularity of products like antibiotic tissues. Sales at its beverage division, which sells Coca-Cola, rose 4.8 percent to 748.2 billion won, while operating profit rose 35.8 percent to 108.7 billion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]