AMOREPACIFIC (002790) Q3 2024 earnings summary

Executive summary

• Revenue increased 10.9% year-over-year to 1.1 trillion KRW, with operating profit surging 160.5% to 75.0 billion KRW and net profit up 23.8% to 51.6 billion KRW.

• Consolidated Q3 2024 revenue rose 2.6% year-over-year to 3,080,525 million KRW, with operating profit up 39.4% to 170,249 million KRW and net profit up 192.6% to 686,670 million KRW.

• Major subsidiary Amorepacific posted a 9.9% revenue increase and a 277.7% jump in operating profit, while other subsidiaries saw a 1.9% revenue decline and 20.3% drop in operating profit.

• The group completed the acquisition of COSRX, increasing its stake to 90.2% and consolidating it as a subsidiary.

Financial highlights

• Group revenue reached 1,068.1 billion KRW, up 10.9% year-over-year; operating profit rose to 75.0 billion KRW, up 160.5%.

• Gross margin for Q3 was 71.7%, with operating margin at 5.5% and net margin at 22.3%.

• SG&A expenses grew 3.6%, with marketing expense up 17% and depreciation up 17%.

• Cash and cash equivalents at Q3-end were 536,016 million KRW, down from 628,998 million KRW at the previous year-end.

• Total assets stood at 8,477,471 million KRW, with equity at 7,036,114 million KRW.

Outlook and guidance

• Overseas business momentum, especially in Western regions and Asia (excluding Greater China), is expected to continue driving growth.

• The group aims to strengthen its premium and global brand portfolio, focusing on e-commerce and multi-brand shop channels.

• Environmental and sustainability initiatives are being expanded, with SBTi approval for 2030 and 2050 net-zero targets.

• Dividend policy targets a payout ratio of 50–75% of net income through 2025.

• Domestic market faces challenges from travel retail decline and brand reclassification.