April 20, 2024
Retail & Consumer
Amorepacific breaks W1tr in operating profit in 2016
[THE INVESTOR] Cosmetics maker Amorepacific released its fourth-quarter and yearly profits on Feb. 2, showing a drop in operating profits in the fourth quarter but a successful year overall.
Amorepacific saw 1.56 trillion won ($1.36 billion) in sales in the last quarter, up 7.3 percent on-year. However, its operating profits fell 16.5 percent on-year to 134 billion won.
Overall in 2016, the company saw an 18.3 percent rise in sales to nearly 6.7 trillion won, bringing its operating profits up 18.5 percent to 1.08 trillion won, breaking the 1 trillion won mark for the first time.
Global sales for Amorepacific came to nearly 1.7 trillion won, up 35 percent on-year, powered by what the company called its “five global champion brands”: Sulwhasoo, Laneige, Mamonde, Innisfree, and Etude House. The company expanded its global reach in 2016 by launching its Hera brand in China and its Innisfree brand in Vietnam, while increasing distribution of Sulwhasoo and Laneige in Canada.
Both Amorepacific and rival cosmetics powerhouse LG Household & Health Care saw record highs in 2016 due to growing popularity of luxury Korean cosmetics in China, despite fears that political tensions between the two countries may dent profits.
With consumer spending down in Korea and sentiments uncertain in China, it is expected that both companies will seek to expand their influence abroad in 2017 to find new sources of growth. This year, Amorepacific will be expanding into the Middle Eastern market, starting with an Etude store in Dubai.
By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)
Amorepacific saw 1.56 trillion won ($1.36 billion) in sales in the last quarter, up 7.3 percent on-year. However, its operating profits fell 16.5 percent on-year to 134 billion won.
Overall in 2016, the company saw an 18.3 percent rise in sales to nearly 6.7 trillion won, bringing its operating profits up 18.5 percent to 1.08 trillion won, breaking the 1 trillion won mark for the first time.
Global sales for Amorepacific came to nearly 1.7 trillion won, up 35 percent on-year, powered by what the company called its “five global champion brands”: Sulwhasoo, Laneige, Mamonde, Innisfree, and Etude House. The company expanded its global reach in 2016 by launching its Hera brand in China and its Innisfree brand in Vietnam, while increasing distribution of Sulwhasoo and Laneige in Canada.
Both Amorepacific and rival cosmetics powerhouse LG Household & Health Care saw record highs in 2016 due to growing popularity of luxury Korean cosmetics in China, despite fears that political tensions between the two countries may dent profits.
With consumer spending down in Korea and sentiments uncertain in China, it is expected that both companies will seek to expand their influence abroad in 2017 to find new sources of growth. This year, Amorepacific will be expanding into the Middle Eastern market, starting with an Etude store in Dubai.
By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)
