Amorepacific (090430) Q1 2025 earnings summary

Executive summary

• Revenue rose 17.1% year-over-year to KRW 1,067.5 billion, driven by strong overseas growth and COSRX consolidation.

• Operating profit increased 62.0% to KRW 117.7 billion, with overseas profit up 120% and domestic profit stable.

• Net income climbed 48.5% to KRW 119.0 billion, with improved gross margin and cost controls.

• Domestic sales rose 2.4% year-over-year, while overseas sales surged 40.5%, led by North America and EMEA.

• The company strengthened its premium and luxury brand portfolio and expanded global presence, especially online.

Financial highlights

• Gross profit margin improved by 1.2 percentage points to 72.1% due to better manufacturing costs and product mix.

• SG&A expenses rose 13.7%, with personnel expenses up 29% from one-off incentive provisions.

• Depreciation cost increased 28.8% due to COSRX intangible asset amortization.

• Cash and cash equivalents at period end: KRW 599.5 billion.

• Total assets: KRW 6,877.6 billion; total equity: KRW 5,371.7 billion.

Outlook and guidance

• Overseas expansion and COSRX integration expected to continue driving growth, especially in North America, EMEA, and APAC.

• Focus on product innovation, omni-channel marketing, and cost efficiency to sustain profitability.

• Plans to maintain a dividend payout ratio of 35% of annual net income (excluding one-off items) through 2025.

• Ongoing investments in R&D, digital transformation, and sustainability initiatives to support long-term growth.