Amorepacific (090430) Q2 2025 earnings summary

Executive summary

• Revenue rose 11.1% year-over-year to 1.0 trillion KRW in Q2 and 14.1% to KRW 2,072.5 billion in H1 2025, with both domestic and overseas businesses contributing to growth.

• Operating profit surged 1673.4% year-over-year to 73.7 billion KRW in Q2 and 149.1% to KRW 191.4 billion in H1 2025, driven by improved profitability in both domestic and overseas segments.

• Net income dropped 92.9% year-over-year to 37.6 billion KRW in Q2 but reached KRW 156.6 billion in H1 2025, reflecting strong growth but also a significant decrease in other income.

• Domestic sales rose 5.1% year-over-year, while overseas sales surged 26.6%, supported by brand portfolio expansion and the COSRX acquisition.

• The company strengthened its premium and luxury brand portfolio, expanded global presence, and enhanced digital and multi-brand channel competitiveness.

Financial highlights

• Gross profit margin improved by 2.1 percentage points to 72.6% in Q2 and to 63.7% in H1 2025, driven by stricter promotion control and enhanced brand mix.

• Marketing expenses decreased 11% year-over-year, while SG&A expenses increased in line with revenue growth.

• Personnel expenses increased 10% year-over-year due to performance-based incentives.

• Basic EPS for common shares was KRW 2,125 (H1 2025); interim dividend per common share was KRW 1,125.

• Cash and cash equivalents at period end: KRW 649.2 billion; total assets: KRW 6,764.5 billion; equity ratio: 79.5%.

Outlook and guidance

• Continued focus on premiumization, global expansion, and digital channel enhancement, with strong momentum in travel retail and e-commerce.

• Ongoing restructuring and cost control measures expected to support profitability, especially in Greater China.

• Dividend payout ratio to be maintained at 35% of adjusted net income through 2025, with stable free cash flow allocation.