Amorepacific Group's overseas sales surpassed two trillion won for the first time in 2019.
The cosmetics company announced in a public disclosure on Feb. 5 that it posted 6.28 trillion won in sales last year, up 3.4 percent from a year ago. But the company’s operating profit dropped 9.3 percent to 498.2 billion won.
One notable point is an increase in overseas sales. Last year, its overseas sales totaled 2.08 trillion won, up 6 percent on year. It was the first time that the figure surpassed the 2 trillion won mark.
The sales growth was led by the Chinese and North American markets. Sales in Asian countries recorded 1.96 trillion won, up 5 percent from a year earlier. North American sales swelled 38 percent on year to 93 billion won, playing a significant role in scaling up Amorepacific’s overseas sales growth. Amorepacific launched various new products of the Sulwhasoo and Laneige brands and expanded its channel portfolio by collaborating with global business partners.
In the domestic market, sales climbed 5 percent to 3.52 trillion won and operating profit inflated 13 percent to 319.5 billion won.
Overall, Amorepacific suffered a sharp drop in operating profit in 2019 due to increased marketing expenses overseas. In particular, it stepped up marketing efforts in China to regain its market share.
In addition, the sluggish business of its road shop brands such as Innisfree (-8 percent) and Etude (-18 percent) contributed to the drop in operating profit.