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.

• Major subsidiary Amorepacific posted a 9.9% revenue increase and a 277.7% jump in operating profit, driven by overseas growth and COSRX consolidation.

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%.

• Net income increased 23.8% to 51.6 billion KRW.

• Gross profit margin remained strong at 71.3%.

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

Outlook and guidance

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

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