By Lee Hyo-sik
AmorePacific, the country’s largest cosmetics maker, posted its best performance ever in the first quarter, thanks to its booming business in China and other Asian countries.
AmorePacific Group posted 1.44 trillion won in sales in the three months to March, up 26.7 percent from a year earlier. Its operating profit soared 50 percent to 320.7 billion won.
The group’s stronger-than-expected performance was driven by its flagship unit AmorePacific and other cosmetics affiliates, which sold a record number of products at home and abroad.
AmorePacific alone posted record sales of 1.2 trillion won in the first quarter, up 58.2 percent from a year earlier. Its operating profit jumped 29.2 percent to 278 billion won.
The firm’s domestic business grew 31 percent to 796.2 billion won as its Sulwhasoo, Hera and other brands performed strongly. Its local sales also received a boost from Chinese and other foreign tourists who purchased the company’s skincare and other beauty products at duty free shops.
The company’s overseas sales reached 269.3 billion won during the January to March period, up 40 percent from last year. In China and other Asian countries, it sold products worth 241.2 billion won, up 50.6 percent. But its sales in Europe, the United States and Japan declined 7.7 percent to 38.9 billion won.
Innisfree, AmorePacific Group’s second-largest affiliate, earned 142.6 billion won in revenue, up 35 percent. Its operating profit jumped 46 percent to 35.4 billion won.
The group’s pharmaceutical affiliate, Aestura, saw its sales rise 7.4 percent to 61.6 billion won, but it incurred a 600 million won operating loss.
“We will continue to make every effort to differentiate our beauty product brands from those of our competitors,” an AmorePacific spokeswoman said. “We will continue to boost our presence in China and other Asian markets, and create synergy among our affiliates.”
AmorePacific shares closed down 0.51 percent at 387,000 won, correcting recent steep gains.