Seoul: Amorepacific Corp., South Korea's leading cosmetics firm, announced Wednesday a substantial increase in its first-quarter net profit, attributed to the aggressive expansion of its overseas sales. The company's net profit for the January-March period reached 119 billion won (US$82.9 million) on a consolidated basis, marking a 48.5 percent rise from the previous year, as revealed in a regulatory filing.
According to Yonhap News Agency, Amorepacific's operating profit increased by 62 percent on-year, totaling 117.7 billion won, while sales saw a 17.1 percent climb to 1.06 trillion won. These figures exceeded market expectations, as analysts had predicted an average net profit of 92.2 billion won, based on a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
The company attributed its enhanced earnings to strong growth in overseas sales, especially in Western markets. In the Americas, the company's strategic diversification of brand and product portfolios resulted in a significant 79 percent boost in regional sales. In Europe, the Middle East, and Africa, combined sales more than tripled, driven by the popularity of the Laneige brand and the introduction of products tailored to local preferences.
"We are focused on reinforcing each of our brand's core identities and are actively reshaping our overseas business landscape, especially in regions with high growth potential," stated an official from Amorepacific.
The robust performance of its flagship cosmetics business also benefited Amorepacific Holdings Corp., the holding company of the cosmetics giant, which reported a quarterly net profit increase of 43.2 percent, reaching 140 billion won. The holding company's operating profit for the quarter was 128.9 billion won, up from 83 billion won a year ago, with sales increasing by 15.7 percent to 1.16 trillion won.