Skip to main content


Amorepacific Group Summary of Q1 2018 Earnings

Wed May 09 13:08:00 KST 2018

Amorepacific Group sales declines 10% to KRW 1.6643 trillion, operating profit declines 27% to KRW 278.1 billion in Q1 2018

Amorepacific Group recorded KRW 1.6643 trillion in sales and KRW 278.1 billion in operating profit in Q1 2018.

Amorepacific Group made various efforts to improve its domestic business despite difficult operating conditions. To expand customer base, the company launched a variety of new products to diversify product portfolio. New store formats and customer-oriented contents were developed to offer differentiated customer experiences. Online sales grew, especially through direct-owned online malls, as a result of specialized digital marketing activities and launch of online-only products.

In the first quarter of 2018, the Amorepacific Group accelerated its global expansion with a focus on amplifying its five global champion brands (Sulwhasoo, Laneige, Mamonde, Innisfree and Etude House), creating a for earnings improvement worldwide. The company entered the Australian market for the first time by launching Laneige in Australia's Sephora stores. Mamonde entered the US market by launching through 'ULTA' stores, while Innisfree and Etude House opened its first stores in Japan and the Middle East respectively. In May, Hera plans to enter the ASEAN market (Singapore) for the first time as well.

Moving forward, Amorepacific Group plans to further establish a platform for sustainable growth. This will be guided by its three management principles: innovative product development, customer experience innovation, and digital innovation.

[Amorepacific Group Q1 2018 earnings] (Unit: KRW billion)

Amorepacific Group Q1 2018 earnings
Q1 2017 Q1 2018
Sales 18,554 16,643 -10.3%
Operating profit 3,785 2,781 -26.5%
Net income 2,662 2,160 -18.9%

[Sales and operating profits of major beauty affiliates] (Unit: KRW 100 million)

Sales and operating profits of major beauty affiliates
Affiliate Amorepacific YoY Growth Innisfree YoY Growth Etude House YoY Growth
Sales 14,316 -9% 1,627 -18% 648 -20%
Operating Profit 2,359 -26% 329 -29% -15 Deficit
Sales and operating profits of major beauty affiliates
Affiliate Espoir YoY Growth Aestura YoY Growth Amos Professional YoY Growth
Sales 124 -1% 282 2% 259 1%
Operating Profit -0 Deficit 11 -4% 76 5%

Business performance of major beauty affiliates in Q1 2018

Amorepacific : Sales at KRW 1.4316 trillion (-9%); operating profit at KRW 235.9 billion (-26%)

The main affiliate, Amorepacific, saw a reduction in YoY sales and operating profit due to the declined number of Chinese tourists, restructuring of duty free distribution, and sluggish sales in the tourism commercial zones. In numbers, domestic business sales decreased by 15% YoY to KRW 940.8 billion, while operating profit declined 33% to KRW 157.5 billion. However, overseas business sales increased 5% YoY to KRW 500.8 billion. Operating profit declined 7% to KRW 81.5 billion.

  • -Domestic business : Sales at KRW 940.8 billion (-15%), operating profit at KRW 157.5 billion (-33%)

    The Luxury Brands (Sulwhasoo, Hera, Primera, Vitalbeautie, etc.) saw a reduction in the sales of its major brands in correlation to declined number of Chinese tourists and the restructuring of duty free distribution. A number of new products, such as Sulwhasoo Bloomstay, Hera Rosy-Satin Cream, and primera Men Watery Fluid, were launched in an effort to expand customer reach and strengthen brand competitiveness.

    Sales for the Premium Brands (Iope, Laneige, Mamonde, etc.) went down due to sluggish duty free and tourism commercial zone sales. To enhance brand attractiveness with distinctive new products, Laneige Layering Cover Cushion, Iope Super Vital Cream, and Mamonde Creamy Tint Squeeze Lip were launched. In addition, a Laneige Water Bar Pop-up Store was opened alongside the launch of Aritaum Smart Club to improve the competitiveness of online and offline channels, and to provide a wide range of experiences to customers.

    The Daily Beauty Brands (Ryo, Mise en Scène, Happy Bath, etc.) showed growth online, as a result of optimized marketing activities targeted at various digital platforms. Sales of functional products that specialize in hair and body care, such as Mise en Scène Perfect Serum and Illiyoon Ceramide Ato Concentration Cream showed growth. Additionally, a number of new products were launched, such as Ryo Fermented Ginseng Shampoo, Happy Bath Nutrition, Mise en Scène Super Botanical Shampoo. These led to solid market leadership for the Daily Beauty sector.

    Osulloc heightened digital marketing activities, which resulted in an increase in number of visitors to the online store ( and growth in the number of new customers for Osulloc. Sales of best-selling pure tea products, such as Sejak and Samdayeon, increased along with top-selling blended teas, such as Samdayeon Jeju Tangerine and Scene of Jeju.

  • -Overseas business : Sales at KRW 500.8 billion (+5%); operating profit at KRW 81.5 billion (-7%)

    Reinforcing its distribution competitiveness, Amorepacific expanded overseas business focusing on its five global champion brands (Sulwhasoo, Laneige, Mamonde, Innisfree, and Etude House).

    In Asia, Amorepacific achieved growth in sales by 7% to KRW 478 billion YoY through its five global champion brands. Sulwhasoo demonstrated its leadership as Asia’s representative beauty brand propelled by growth in sales of new products, including the Concentrated Ginseng Renewing Water, as well as best-selling First Care Activating lines and Timetreasure lines. Laneige further augmented its product portfolio thanks to robust sales of its moisture line, including Perfect Renew. The launch of innovative new products, such as Layering Cover Cushion, led to the growth in sales in the Greater China Region. Mamonde increased its presence and the number of contact points for local customers by entering multi-brand shops like Sephora and Eveandboy in the ASEAN market. Innisfree introduced a localized product for China, the White Peony Tone-up Cream, as part of the brand’s effort to become more responsive to markets. Innisfree’s first shop in Japan has established a firm foothold, and Etude House has gained ground as a global young makeup brand by adding more e-commerce channels for China and ASEAN while seeing robust sales growth in the Japanese market.

    In North America, sales increased by approximately 31% YoY to KRW 15.3 billion due to the launch of Laneige in Sephora alongside robust sales in the Innisfree flagship store. Europe’s sales decreased 54% YoY to KRW 7.6 billion, due to the termination of a brand license (Lolita Lempicka), but still carried forward with the renewal of the brand Annick Goutal to ‘Goutal Paris’ in order to secure competitiveness for new markets.

Innisfree : Sales at KRW 162.7 billion(-18%); operating profit at KRW 32.9 billion (-29%)

Sales of Innisfree through duty-free channels and road shops also decreased as a result of declined number of tourists to Korea. Despite the worsening business conditions, Innisfree provided differentiated purchasing experiences using Mini Shops, Green Lounges and Self-checkout services. Product competitiveness was bolstered through product upgrades in signature skincare lines including the Green Tea Seed Serum and Orchid Cream, and also through the launch of new makeup lineups, such as My Lip Balm and My Foundation.

Etude House : Sales at KRW 64.8 billion (-20%); operating profit turns to loss

Etude House experienced sluggish duty-free and major commercial zone. Etude House however diversified its product categories and expanded the range of customers through the introduction of new product lineups, such as Mini to Match and Monster Cleansing. The introduction of the digital curating contents service #etudepick, is part of Etude House’s strategy to reinforce communication with customers through digital media.

Espoir : Sales at KRW 12.4 billion (-1%); operating profit turns to loss

Launching at a domestic multi-brand cosmetics store (Chicor), Espoir expanded customer touch points during the first quarter. Espoir also expanded its offering of customer experiences by continuously opening stores with various concepts, such as Makeup Market and Makeup Pub.

Aestura : Sales at KRW 28.2 billion (+2%); operating profit at KRW 1.1 billion (-4%)

Aestura saw slight growth in sales thanks to inner beauty products such as Atobarrier. Since its deal to sell its filler brand Cleviel, Aestura is focusing its core competence on the area of medical beauty.

Amos Professional : Sales at KRW 25.9 billion (+1%); operating profit at KRW 7.6 billion (+5%)

Amos professional saw its sales and operating profit increase with the introduction of its new product, such as It’s Glow and Color Trend Seminar for spring. Amos Academy where specialized education is provided for hair designers also laid the foundation for the continuous growth of the brand.

  • 新“V”健康生活公益活动 2019-05-06
  • 成都:高新区知识产权服务业集聚发展试验区通过验收 2019-04-27
  • [大笑]是谁在炒呢?你们不参与,能炒得起来么? 2019-04-24
  • 贸易战打败的是经济理论家,不是中美两国经济。 2019-04-24
  • 聚焦行业痛点 广东机器人产业链创新增速 2019-04-18
  • 为英烈权益划出法治红线(纵横) 2019-04-18
  • 小长假 新疆接待游客353.6万人次 2019-04-15
  • 习近平应约同俄罗斯总统普京通电话 2019-04-14
  • 河北廊坊永清地震,这些谣言不可信! 2019-04-14
  • 汇聚正能量 讴歌新时代——关于用微电影传播核心价值观的倡议书 2019-04-13
  • 反制更快更强更准!中国坚决打赢对美贸易自卫反击战! 2019-04-13
  • 朝媒:金永南访俄会见普京 并递交金正恩亲笔信 2019-04-09
  • 中国宗教研究学者:儒道佛三教关系为世界宗教发展提供新启迪 2019-04-07
  • 股市涨跌都正常,但不能允许欺诈,反正欺诈发现了,国家可以罚款,但股民就白损失了,这是什么规矩? 2019-04-05
  • 不管怎么修饰辞藻,只要放弃革命,就是苏联的结果,还用证明吗? 2019-04-05
  • 646| 775| 400| 829| 246| 15| 259| 932| 171| 740|