AMOREPACIFIC (002790) Q4 2024 earnings summary

Executive summary

• Revenue increased 5.9% year-over-year to KRW 4.26 trillion, with operating profit up 64% to KRW 249.3 billion and net profit up 178.2% to KRW 652.9 billion.

• Major subsidiary Amorepacific saw revenue rise 5.7% to KRW 3.89 trillion and operating profit more than double to KRW 220.5 billion.

Financial highlights

• Gross profit margin improved to 71.8% for FY 2024, up from 71.0% the previous year.

• SG&A expenses as a percentage of sales decreased to 66.0% from 67.2% year-over-year.

• 4Q 2024 revenue for Amorepacific rose 17.9% year-over-year to KRW 1.09 trillion, with operating profit up 279.6% to KRW 78.5 billion.

• 4Q 2024 gross profit margin increased to 71.4%, with marketing expenses down 9% and personnel expenses up 31%.

Outlook and guidance

• Overseas business is expected to remain a key growth driver, especially in the Western region and other Asia, while domestic business faces challenges from travel retail and brand reclassification.