AMOREPACIFIC (002790) investor relations material

Executive summary

• Revenue rose 5.0% year-over-year to KRW 1,222.7 billion, with operating profit up 6.9% to KRW 137.8 billion and net income at KRW 132.5 billion.

• Main cosmetics subsidiary revenue increased 6.4% year-over-year to KRW 1,135.8 billion, with operating income up 7.6% to KRW 129.5 billion.

• Domestic business grew 8.5% in sales and 65.0% in operating profit, while overseas sales rose 5.8% but overseas operating profit declined 18.5%.

• Growth was driven by strong domestic and overseas sales, especially in online, multi-brand shop, and travel retail channels, with key brands and new product launches supporting performance.

Financial highlights

• Gross profit margin expanded to 73.1% from 72.1% year-over-year, aided by improved regional mix.

• SG&A expenses increased 7.9% year-over-year, with marketing expense up 19.7% due to overseas brand launches.

• EPS (basic) was KRW 621 in Q1 2026, down from KRW 1,361 in Q1 2025.

• Cash and cash equivalents at Q1-end were KRW 765.2 billion.

• Beauty subsidiaries saw revenue decline 12.8% and operating profit drop 75.2% year-over-year, while other subsidiaries' revenue and profit surged.

Outlook and guidance

• Continued focus on global expansion, especially in North America, EMEA, Japan, and APAC.

• Ongoing investments in marketing, R&D, and digital transformation to drive new product launches and channel diversification.

• Management expects stable growth in domestic and overseas markets, emphasizing premium and functional products.