Beauty conglomerate Amorepacific Group has reported a 15.6 per cent year-on-year drop in revenue for last year, its net profit plummeting 48.9 per cent to US$121.2 million.
During the fourth quarter, the group’s turnover was down 16.7 per cent to $984 million, however operating profit skyrocketed 3331.5 per cent to $64 million.
Sales by Amorepacific Group’s namesake cosmetic subsidiary declined 16.1 per cent domestically and 17.1 per cent in overseas markets last year. Despite more than 20 per cent online sales growth, domestic performance failed to improve as revenue in the travel retail channel declined by a double-digit rate while marketing expenses surged, the company said.
The overseas business unit’s loss was attributed to the 30 per cent contraction in China sales, resulting from “consumption from the resurgence of Covid-19, Mainland China’s ‘Zero-Covid’ policy and the restructuring of offline stores.
Meanwhile, North American sales were up by 83 per cent thanks to the robust growth of major brands, including the recently-acquired clean beauty brand Tata Harper. The company also recorded 37 per cent growth in Europe mainly driven by Laneige.
Throughout the year, the South Korean beauty retailer has been working to diversify its international business, reducing its reliance on China.
