Due to China’s Retaliation over THAAD
As AmorePacific Group failed to break through the high wall of a U.S. anti-missile system, known as THAAD, its first-quarter operating profit marked a sharp drop.
The group said in a regulatory filing on April 24 that its consolidated operating profit in the first quarter came to 378.52 billion won (US$335.12 million), down 9.7 percent from the same period a year ago. It saw its sales increase 5.5 percent to 1.86 trillion won (US$1.64 billion) over the same period, while its net profit declined 18.2 percent to 266.23 billion won (US$235.7 million).
The decrease in operating profit of AmorePacific, one of the main affiliates, adversely affected the overall performance of the group. Consolidates operating profit of AmorePacific in the first quarter tentatively totaled 316.83 billion won (US$280.51 million), down 6.2 percent from a year earlier. Its sales grew 5.7 percent to 1.57 trillion won (US$1.39 billion) over the same period, while its net profit dropped 15 percent to 223.51 billion won (US$197.88 million). The company said, “Our sales at duty free stores decreased due to the drop in foreign tourists. We will expand our sales of skincare and inner beauty sectors and strengthen our digital competitiveness.”
Meanwhile, consolidated operating profit of SK Bioland in the first quarter stood at 4.18 billion won (US$3.7 million), up 10.5 percent from the same period a year ago. The company saw its sales increase 15 percent to 28.13 billion won (US$24.9 million) and its net profits increase 0.5 percent to 3.02 billion won (US$2.68 million). Operating profit of Meritz Securities in the first quarter showed a whopping increase of 42.8 percent on-year to 97.8 billion won (US$86.59 million). Its sales grew 6.3 percent to 1.25 trillion won (US$1.11 billion) and its net profit also surged 61 percent to 80.9 billion won (US$71.62 million). The company’s return on equity (ROE) stood at 17.2 percent.