AMOREPACIFIC CORPORATION - Sales down 14.9% to KRW 2.2892 trillion and operating profit down 46.9% to KRW 160.3 billion
On July 28, 2022, Amorepacific Group reported sales of KRW 2.892 trillion and an operating profit of KRW 160.3 billion in H1 2022, down by 14.9% and 46.9% respectively from H1 2021.
In H1 2022, Amorepacific Group faced challenges due to the unstable Korean and global market conditions. The group managed to make a rapid growth in the North American market and saw continued growth in the e-commerce channel. However, the lengthy lockdown of major Chinese cities from the spread of COVID-19 led to poor earnings in Q2 2022 and as a result, both sales and operating profit decreased. The total cosmetics sales in H1 2022 were KRW 2.1125 trillion.
In Q2 2022, the overall sales of Amorepacific Group went down by 21.3% to KRW 1.0264 trillion with operating loss of 10.9 billion compared to the same period last year. Its main affiliate, Amorepacific recorded sales of KRW 945.7 billion, down by 19.6% from Q2 2021 with an operating loss of KRW 19.5 billion.
In the Korean market, the sales in Q2 decreased to KRW 627.8 billion, by 15.4% compared to a year ago. Though the online sales increased, the weak showings in the TR channel that resulted from the lockdown of Chinese cities led to a decline in the overall sales. Hera and Vital Beautie showed noticeable growth with increased presence in their core categories and through various collaboration projects. Sulwhasoo strengthened its Concentrated Ginseng Renewing with the new addition, Concentrated Brightening, and Laneige expanded the personalized service with Bespoke NEO. In the Daily Beauty sector, Ryo released new gray hair covering Double Effector Black Shampoo and a new premium dental care brand, Gentist was added to the brand portfolio of Amorepacific Group.
In the global market, the sales in Q2 went down to KRW 297.2 billion, by 33.2% due to poor showings in the Asian region with the lockdown of Chinese cities. However, in the North American market, where Laneige and Sulwhasoo expanded their brand power following the Q1, sales increased by 66% continuing a steep growth. In particular, Laneige's collaboration with Sydney Sweeney for its Water Bank campaign and the expansion of Sulwhasoo into new e-commerce channels including Amazon, greatly contributed to their growth. In the European market, the sales went up by 15% with Laneige showing strong sales in Sephora and e-commerce channels and Goutal Paris' domestic sales returning to growth.
Main affiliates showed an overall improvement in sales and operating profit through growth in the online channel and with a strengthened product portfolio. Etude showed a good performance in the online and MBS channels, Espoir grew in the face makeup category, and Amos Professional restructured its product portfolio, centered around Ayunchae with all of the brands showing growth in both sales and operating profit. Innisfree, however, reported a decrease in sales because of its poor showings in the travel retail channel despite having marked growth in the online channel. O'sulloc continued its upward trend in sales and operating profit, largely attributed to its Tea Class service targeting Millennials and Gen Z and high growth in the online channel, centering on large platforms.
This year, Amorepacific Group has been pushing forward with its three strategies: Strong Brand, Digital Transformation and Business Fundamentals Innovation under the management policy: Winning Together. As part of its effort, the group has developed engine products, tapped into potential new business areas including dermocosmetics and wellness, and improved data-powered customer service, while simultaneously working for digital transformation to strengthen its digital commerce and content capabilities and build a strong community of fans and to secure its future digitally fueled growth. Furthermore, Amorepacific Group has carried forward the data-driven optimization of inventory management and ESG management.
[Amorepacific Group/Amorepacific Earnings](Unit: KRW 100 million/Growth: YoY growth rate)| Category | H1 2021 | H1 2022 | Growth(YoY) | |
| Amorepacific Group | Sales | 26,909 | 22,892 | -14.9% |
| Operating profit | 3,022 | 1,603 | -46.9% | |
| Amorepacific | Sales | 24,294 | 21,108 | -13.1% |
| Operating profit | 2,675 | 1,385 | -48.2% |
※ H1 2022 Amorepacific Group's sales in the cosmetics category: KRW 2.1125 trillion
| Category | Q2 2021 | Q2 2022 | Growth(YoY) |
| Sales | 13,034 | 10,264 | -21.3% |
| Operating Profit | 1,046 | -109 | Turned a loss |
※ Q2 2022 Amorepacific Group's sales in the cosmetics category: KRW 961.9 billion
| Category | Total | Korean | Global | |||
| Sales | 9,457 | -19.6% | 6,278 | -15.4% | 2,972 | -33.2% |
| Operating Profit | -195 | Turned a loss | 367 | -55.3% | -425 | Turned a loss |
| Affiliate | Innisfree | Etude | Espoir | |||
| Sales | 720 | -18.1% | 271 | +3.2% | 134 | +16.3% |
| Operating Profit | 55 | -3.6% | 9 | Turned a profit | 5 | Turned a profit |
| Affiliate | Amos Professional | O'sulloc | ||||
| Sales | 170 | +4.8% | 178 | +24.6% | ||
| Operating Profit | 33 | +1.7% | 8 | +28.7% |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Amorepacific Corporation published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 08:45:05 UTC.
