Amorepacific Group posts net loss of 26 billion won in second quarter

Industry

Published: 28 Jul. 2022, 15:54

Amorepacific Group posts net loss of 26 billion won in second quarter

Amorepacific Group headquarters in Yongsan District, central Seoul [YONHAP]

Amorepacific Group posted a net loss of 26 billion won ($20 million) in the second quarter, compared to a net profit of 142.8 billion won the previous year.

It missed market expectations of a 21.1 billion won net profit compiled by FnGuide.

The company reported revenue of 1.03 trillion won, down 21.3 percent on year. The figure fell behind market expectations of 1.14-trillion-won revenue.

Cosmetics subsidiary Amorepacific, 50.19 percent owned by Amorepacific Group, reported a net loss of 37.2 billion won, compared to a net profit of 59.2 billion won the previous year. The figure also failed to meet market expectations of 23.9-billion-won net profit.

Revenue fell 19.6 percent on year to 945.7 billion won, also lower than market expectations.

The company’s local sales fell 15 percent on year to 627.8 billion won. Amorepacific said rising Covid-19 cases in China and the lockdown in Shanghai, taking place in April and May, took a toll on its duty free sales.

Overseas sales fell 33 percent on year to 297.2 billion won. The biggest impact was seen in Asian countries, with sales falling 39 percent on year to 225.5 billion won. Amorepacific again cited the lockdown in Shanghai for the drop, saying Chinese sales make up for half of Asian market sales.

Sales from North America rose 66 percent on year to 36 billion won. Sulwhasoo started to sell on Amazon in April, increasing online sales in the United States.

Revenue of its budget cosmetics brand Innisfree fell 18.1 percent on year to 72 billion won also due to decreasing duty-free sales.

Comestics brand Etude logged revenue of 27.1 billion won, up 3.2 percent on year. It reported operating profit of 900 million won, compared to operating loss of 1.5 billion won the previous year. The company said the brand saw big growth in online sales, and that sales of sun screen, made in collaboration with YouTuber Director Pi, helped it log an operating profit.

Amorepacific Group's shares fell 6.94 percent on Thursday to 36,900 won and Amorepacific's dropped 9.89 percent to 127,500 won.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]