AMOREPACIFIC (002790) Q1 2025 earnings summary

Executive summary

• Revenue increased 15.7% year-over-year to 1.16 trillion KRW, with operating profit up 55.2% to 128.9 billion KRW and net profit up 43.2% to 140.0 billion KRW.

• Major subsidiary Amorepacific saw revenue rise 17.1% to 1.07 trillion KRW and operating profit surge 62.0% to 117.7 billion KRW, driven by strong overseas sales and new brand launches.

• Domestic sales rose 2.4% year-over-year, while overseas sales surged 40.5%, offsetting a decline in China.

• The group completed the acquisition of COSRX, further strengthening its global portfolio and contributing to revenue and profit growth.

Financial highlights

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

• Personnel expenses rose 29% from one-off incentive provisions; depreciation costs up 29% from COSRX intangible asset amortization.

• SG&A expenses increased 13.7% year-over-year.

• Consolidated net income margin improved to 12.0% from 9.7% a year ago.

• Cash and cash equivalents at period end: KRW 725.4 billion.

Outlook and guidance

• Overseas business momentum expected to continue, especially in Western Region, North America, and EMEA, with ongoing integration of COSRX and focus on global expansion.

• Domestic luxury and daily beauty segments focus on product innovation and omni-channel expansion.

• Continued investment in R&D and sustainability initiatives, targeting a 90% carbon emissions reduction by 2050.