South Korea’s Amorepacific Group reported a 5.7 percent drop in sales to KRW 963.3 billion (USD 729.5 million) for the third quarter, on the back of a double-digit decline in the beauty giant’s Asia revenues.
By region, domestic revenues fell 7.5 percent to KRW 543.2 billion, weighed down by an 8.8 percent decrease in cosmetics sales, with travel retail sales, accounting for 23 percent of domestic revenue, declining by double digits.
Overseas, international revenues were down 3.6 percent to KRW 317.7 billion, dragged down a 13 percent decline in Asia, where China makes up 50 percent of the company’s sales. Japan sales skyrocketed 30 percent during the three months.
Despite the overall sales decline, Amorepacific did manage to clock an uptick in net profit, up 29.1 percent year-on-year.
Coinciding with the earnings update, Amorepacific said it has acquired additional shares in skincare brand COSRX, which has been integrated as a subsidiary of Amorepacific. The deal, worth KRW 755.1 billion, comes two years after Amorepacific previously acquired a 38.4 percent stake in COSRX in September 2021.
“We are thrilled that COSRX, which has shown rapid growth through differentiated products and marketing based on an exceptional understanding of digital channels, has become a part of our group,” said Seunghwan Kim, CEO of Amorepacific Corporation.
“Moving forward, we aim to amplify COSRX’s unique strengths while also integrating Amorepacific’s vision and business management expertise to develop it into a captivating brand that global customers will love.”