AMOREPACIFIC (002790) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.9% year-over-year to 1.1 trillion KRW in Q2 and 12.3% to KRW 2,259.7 billion in H1 2025, with operating profit surging 555.5% to 80.1 billion KRW in Q2 and 119.4% to KRW 208.9 billion in H1.

• Major subsidiary Amorepacific posted 11.1% revenue growth and a 1673% jump in operating profit.

• Net profit declined 90.5% year-over-year to 50.8 billion KRW in Q2, but H1 net income reached KRW 190.8 billion.

• Major business segments include cosmetics (95.1% of sales) and daily beauty/other (4.9%), with strong growth in both domestic and overseas markets.

• The group completed the acquisition of COSRX, strengthening its functional cosmetics portfolio and global reach.

Financial highlights

• Gross profit margin improved by 2.1 percentage points to 72.6% in Q2, while H1 gross margin was 35.9% (up from 35.8%).

• Operating margin improved to 7.3% in Q2 and 9.2% in H1 2025.

• Marketing expenses decreased 11% through cost optimization, while personnel expenses rose 10% from incentive payouts.

• Cash flow from operations was KRW 419.9 billion, with cash and equivalents at KRW 751.5 billion at period end.

• Earnings per share (basic): KRW 920 for common stock in H1 2025, up from KRW 272 in H1 2024.

Outlook and guidance

• Domestic and overseas businesses both showed strong growth, with Greater China turning profitable for two consecutive quarters.

• The group targets continued double-digit growth in overseas markets, leveraging new brand launches and expanded e-commerce channels.

• Ongoing focus on premiumization, channel expansion, cost control, product innovation, digital transformation, and sustainability initiatives.

• Dividend policy aims for a payout ratio of 50–75% of separate net income through 2025, with ongoing share buybacks and cancellations.