Amorepacific Group’s 2020 annual net profit plummets 90 percent
Published: 03 Feb. 2021, 18:44
Amorepacific Group’s annual net profit nosedived more than 90 percent last year compared to the previous year, as offline sales suffered from social distancing and travel restrictions due to Covid-19.
The cosmetics company’s annual net profit last year stood at 22.05 billion won ($19.78 million), down 92.2 percent from the previous year, according to a preliminary report released on Wednesday. The company, best known for its Sulwhasoo cosmetics brand, saw a net loss in the fourth quarter of 84.9 billion won, down 25.5 percent from a net loss of 67.7 billion won during the same period a year earlier.
Its annual revenue last year declined 21.5 percent on year to 4.93 trillion won. Its revenue in the fourth quarter declined 16 percent from a year earlier to 1.26 trillion won.
“Offline channels suffered in particular from plummeting global tourists and social distancing inside and outside of Korea,” said Amorepacific Group in a statement. The company added it focused on online channels and sought growth through the introduction of new premium brands, like Sienu and Labo-H.
The company’s goal for this year is to raise 5.6 trillion won in revenue. It will attempt to raise more than 30 percent of the revenue from sales on e-commerce platforms.
Of Amorepacific Group’s major brands, decline in revenue was most evident in Etude. Its on-year revenue declined 38 percent, followed by Innisfree at 37 percent.
BY JIN MIN-JI [[email protected]]
with the Korea JoongAng Daily
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