South Korean beauty giant Amore Pacific Group posted a 161% jump in operating profit for the third quarter as its expansion in Western markets and strong online sales offset weakness in China.
Operating profit reached 75 billion won ($57 million) in the quarter, while revenue rose 11% to 1.07 trillion won. The company’s US sales more than doubled to 146.6 billion won, driven by strong performance of its Laneige brand and the inclusion of newly acquired COSRX.
The group’s main subsidiary Amore Pacific Corp. saw its operating profit surge 278% to 65.2 billion won, benefiting from improved profitability in its cosmetics business and a turnaround in its personal care segment.
However, the company faced headwinds in China, where revenue fell 34% following a restructuring of its online channel business and store closures. The Greater China region now accounts for just 10% of total revenue, down from 17% a year earlier.
The company’s domestic business showed mixed results, with luxury segment sales rising 6.3% while the premium segment declined 19%. Travel retail sales, representing 16% of domestic revenue, continued to decline.
Net profit increased 24% to 51.6 billion won as the company managed to reduce personnel expenses by 12% while increasing marketing investments by 17%.
