AMOREPACIFIC (002790) Q2 2024 earnings summary

Executive summary

• Revenue decreased 2.4% year-over-year to 1.01 trillion KRW, while operating profit rose 4.2% to 12.2 billion KRW, and net profit surged 1717.3% to 537.3 billion KRW, driven by non-recurring items.

• Major subsidiary Amorepacific saw revenue fall 4.3% and operating profit drop 29.5% year-over-year.

• COSRX's two-month earnings were consolidated, contributing to overall group results.

Financial highlights

• Group revenue: 1.01 trillion KRW (-2.4% YoY); operating profit: 12.2 billion KRW (+4.2% YoY); net profit: 537.3 billion KRW (+1717.3% YoY).

• Amorepacific revenue: 904.8 billion KRW (-4.3% YoY); operating profit: 4.2 billion KRW (-29.5% YoY).

• Major subsidiaries: Innisfree revenue -13.4%, Etude -10.3%, Espoir +15.3%, Amos Professional +6.8%, Osulloc +11.8%.

• Operating profit of major subsidiaries up 52% to 7.7 billion KRW; Innisfree turned to profit.

Outlook and guidance

• Overseas business expected to benefit from COSRX consolidation and strong growth in Western regions.

• Domestic business faces challenges from declining travel retail and new commerce channels.