Amorepacific Corp. posted a 62% jump in operating profit to 117.7 billion won ($86.5 million) in the first quarter as overseas markets delivered exceptional growth, offsetting weakness in China.
The Korean beauty conglomerate reported revenue of 1.07 trillion won, up 17.1% from a year earlier, according to its earnings statement released Wednesday. Net income climbed 48.5% to 119 billion won.
Sales in Western markets more than doubled, surging 102%, while other Asian markets excluding China grew 53%. This overseas expansion helped counterbalance a 10.4% decline in Greater China, where the company has been restructuring operations.
The acquisition of skincare brand COSRX bolstered results across regions, though actual organic growth remains unclear. Western markets achieved double-digit operating margins partly due to this consolidation.
Domestic revenue increased just 2.4% with luxury brands like Sulwhasoo growing 9%, though the company noted travel retail sales were weak, accounting for 17% of domestic revenue.
Personnel expenses jumped 29% due to one-off incentives, while depreciation rose at the same rate from COSRX-related amortization. Gross margin improved 1.2 percentage points to 72.1%.
The results highlight Amorepacific’s increasing reliance on international markets as domestic growth stagnates and China remains challenging despite returning to profitability in the region.
