Amorepacific Corp., South Korea’s premier K-beauty company, announced its first-quarter financial results on Wednesday, revealing a 5 percent decline in net profit year-over-year. This decrease was primarily attributed to a base effect from the previous year’s one-off gains.
For the three-month period ending in March, Amorepacific’s net profit reached 113 billion won ($76.6 million), down from 119 billion won reported in the corresponding period last year. This detailed financial update was shared in a recent regulatory filing.
The decrease in net profit was largely due to the absence of extraordinary income recorded in the prior year. A company spokesperson clarified, “In the first quarter of last year, we recognized significant one-off gains from the sale of intellectual property rights for the French perfume brand Goutal. No such non-recurring gains were recorded in this quarter, impacting the net profit comparison.”
Despite the net profit dip, Amorepacific demonstrated strong operational performance. Operating profit increased by 7.6 percent, rising to 126.7 billion won from 117.7 billion won in the same period last year. Concurrently, consolidated sales saw a healthy 6.4 percent increase, climbing to 1.13 trillion won from 1.07 trillion won.
This robust sales and operating profit growth was driven by significant expansion in key international markets, notably the United States and Japan. The company highlighted strong consumer demand for its premium K-beauty brands, including Hera, Laneige, and Aestura, which continue to enjoy global popularity.
Further bolstering earnings was the equity income derived from COSRX, a rapidly growing K-beauty brand. Amorepacific completed its acquisition of COSRX in 2023, with its financial results fully consolidated into the parent company’s reports starting May 2024.
Looking ahead, Amorepacific reaffirmed its ambitious long-term growth strategy, initially unveiled in September last year. The strategy targets an approximate threefold increase in annual sales, aiming for 15 trillion won by 2035, building upon current annual sales of around 4.25 trillion won.
