Amorepacific Group's net jumps more than 80%
Amorepacific Group's net profit jumped by more than 80 percent in the first quarter on improved sales of brands like Sulwhasoo, Hera, Innisfree and Etude.
On Wednesday, Amorepacific Group reported 176.8 billion won ($158 million) in net profit in the January-March period, up 86.5 percent on year. Revenues were 1.39 trillion won, up 8.5 percent, while operating profit jumped 191.1 percent to 197.7 billion won.
Both the net and operating profits swung to profit from losses in the previous quarter.
“The rapid growth of online channels and recovered sales in China raised the company's revenues,” said Amorepacific Group in a statement.
Online sales in the domestic market were up 30 percent on year, and luxury brands sold well, particularly Sulwhasoo and Hera.
Overseas sales, led by China, were up 20 percent. Cosmetics products from Sulwhasoo and Laneige sold well in Thailand and Vietnam, while Innisfree sold well in Europe in Sephora shops.
Etude, a budget cosmetics brand, saw its on-year operating loss shrink 80 percent to 500 million won, while another cosmetics brand, Espoir, swung to a 300 million won operating loss from a 1.8 billion won operating profit in the same quarter a year ago.
Tea brand Osulloc reported a 1.7 billion won operating profit compared to a 300 million won operating loss in the first quarter last year.
“Amorepacific Group plans to grow strong brands and make a major digital transformation,” said the company in a statement. It said it plans collaboration with digital platforms and to boost sales from health supplements and dermatological skincare products.
Rival LG Household & Health Care reported record first quarter earnings last week, with its net profit rising 10.5 percent on year to 258.8 billion won on revenue that jumped 7.4 percent to 2.37 trillion won.
BY JIN MIN-JI [email@example.com]