• 中国电信安康分公司60家智慧家庭便民服务中心盛大开业中国电信安康-最新活动 2019-08-21
  • [酷]此文已经把马克思理论、边际理论、人类需求层次理论、生物学理论、心理学理论、社会管理学理论等理论在哲学层面完美融合了! 2019-08-21
  • 围绕基本解决执行难问题建言献策 2019-08-20
  • 享受激情世界杯 远离心脑血管疾病 2019-08-20
  • 只有资本主义会关门,社会主义,有无穷的爆发力 2019-08-19
  • 我是家乡代言人 我为新山西点赞——黄河新闻网 2019-08-19
  • 水墨画探索与新现实主义水墨主张 2019-08-17
  • 夏日阳光舒适 大熊猫宝宝悠闲自得 2019-08-16
  • 殷友成.blog的博客—强国博客—人民网 2019-08-16
  • 新华网申领新闻记者证资格审核公示 2019-08-12
  • 天津市宁河区政府原党组成员、副区长李春海接受纪律审查和监察调查 2019-08-12
  • 影驰HOF II DDR4内存发布:液氮超频5.3GHz影驰HOFIIDDR4内存发布-手机行情 2019-08-09
  • 《迷失地铁》 王真儿为角色克服恐水症 2019-08-07
  • 2018欧洲国家消费最低排行榜揭晓 有的比国内游还便宜 2019-08-05
  • “光有米”平台经营者利用花呗套现3.2亿 涉罪被批捕 2019-08-05
  • Skip to main content

    News

    Amorepacific Group Summary of Q1 2018 Earnings

    Wed May 09 13:08:00 KST 2018

    Amorepacific Group sales declines 10% to KRW 1.6643 trillion, operating profit declines 27% to KRW 278.1 billion in Q1 2018

    Amorepacific Group recorded KRW 1.6643 trillion in sales and KRW 278.1 billion in operating profit in Q1 2018.

    Amorepacific Group made various efforts to improve its domestic business despite difficult operating conditions. To expand customer base, the company launched a variety of new products to diversify product portfolio. New store formats and customer-oriented contents were developed to offer differentiated customer experiences. Online sales grew, especially through direct-owned online malls, as a result of specialized digital marketing activities and launch of online-only products.

    In the first quarter of 2018, the Amorepacific Group accelerated its global expansion with a focus on amplifying its five global champion brands (Sulwhasoo, Laneige, Mamonde, Innisfree and Etude House), creating a for earnings improvement worldwide. The company entered the Australian market for the first time by launching Laneige in Australia's Sephora stores. Mamonde entered the US market by launching through 'ULTA' stores, while Innisfree and Etude House opened its first stores in Japan and the Middle East respectively. In May, Hera plans to enter the ASEAN market (Singapore) for the first time as well.

    Moving forward, Amorepacific Group plans to further establish a platform for sustainable growth. This will be guided by its three management principles: innovative product development, customer experience innovation, and digital innovation.

    [Amorepacific Group Q1 2018 earnings] (Unit: KRW billion)

    Amorepacific Group Q1 2018 earnings
    Q1 2017 Q1 2018
    AMOUNT AMOUNT YOY CHANGE
    Sales 18,554 16,643 -10.3%
    Operating profit 3,785 2,781 -26.5%
    Net income 2,662 2,160 -18.9%

    [Sales and operating profits of major beauty affiliates] (Unit: KRW 100 million)

    Sales and operating profits of major beauty affiliates
    Affiliate Amorepacific YoY Growth Innisfree YoY Growth Etude House YoY Growth
    Sales 14,316 -9% 1,627 -18% 648 -20%
    Operating Profit 2,359 -26% 329 -29% -15 Deficit
    Sales and operating profits of major beauty affiliates
    Affiliate Espoir YoY Growth Aestura YoY Growth Amos Professional YoY Growth
    Sales 124 -1% 282 2% 259 1%
    Operating Profit -0 Deficit 11 -4% 76 5%

    Business performance of major beauty affiliates in Q1 2018

    Amorepacific : Sales at KRW 1.4316 trillion (-9%); operating profit at KRW 235.9 billion (-26%)

    The main affiliate, Amorepacific, saw a reduction in YoY sales and operating profit due to the declined number of Chinese tourists, restructuring of duty free distribution, and sluggish sales in the tourism commercial zones. In numbers, domestic business sales decreased by 15% YoY to KRW 940.8 billion, while operating profit declined 33% to KRW 157.5 billion. However, overseas business sales increased 5% YoY to KRW 500.8 billion. Operating profit declined 7% to KRW 81.5 billion.

    • -Domestic business : Sales at KRW 940.8 billion (-15%), operating profit at KRW 157.5 billion (-33%)

      The Luxury Brands (Sulwhasoo, Hera, Primera, Vitalbeautie, etc.) saw a reduction in the sales of its major brands in correlation to declined number of Chinese tourists and the restructuring of duty free distribution. A number of new products, such as Sulwhasoo Bloomstay, Hera Rosy-Satin Cream, and primera Men Watery Fluid, were launched in an effort to expand customer reach and strengthen brand competitiveness.

      Sales for the Premium Brands (Iope, Laneige, Mamonde, etc.) went down due to sluggish duty free and tourism commercial zone sales. To enhance brand attractiveness with distinctive new products, Laneige Layering Cover Cushion, Iope Super Vital Cream, and Mamonde Creamy Tint Squeeze Lip were launched. In addition, a Laneige Water Bar Pop-up Store was opened alongside the launch of Aritaum Smart Club to improve the competitiveness of online and offline channels, and to provide a wide range of experiences to customers.

      The Daily Beauty Brands (Ryo, Mise en Scène, Happy Bath, etc.) showed growth online, as a result of optimized marketing activities targeted at various digital platforms. Sales of functional products that specialize in hair and body care, such as Mise en Scène Perfect Serum and Illiyoon Ceramide Ato Concentration Cream showed growth. Additionally, a number of new products were launched, such as Ryo Fermented Ginseng Shampoo, Happy Bath Nutrition, Mise en Scène Super Botanical Shampoo. These led to solid market leadership for the Daily Beauty sector.

      Osulloc heightened digital marketing activities, which resulted in an increase in number of visitors to the online store (www.osulloc.com) and growth in the number of new customers for Osulloc. Sales of best-selling pure tea products, such as Sejak and Samdayeon, increased along with top-selling blended teas, such as Samdayeon Jeju Tangerine and Scene of Jeju.

    • -Overseas business : Sales at KRW 500.8 billion (+5%); operating profit at KRW 81.5 billion (-7%)

      Reinforcing its distribution competitiveness, Amorepacific expanded overseas business focusing on its five global champion brands (Sulwhasoo, Laneige, Mamonde, Innisfree, and Etude House).

      In Asia, Amorepacific achieved growth in sales by 7% to KRW 478 billion YoY through its five global champion brands. Sulwhasoo demonstrated its leadership as Asia’s representative beauty brand propelled by growth in sales of new products, including the Concentrated Ginseng Renewing Water, as well as best-selling First Care Activating lines and Timetreasure lines. Laneige further augmented its product portfolio thanks to robust sales of its moisture line, including Perfect Renew. The launch of innovative new products, such as Layering Cover Cushion, led to the growth in sales in the Greater China Region. Mamonde increased its presence and the number of contact points for local customers by entering multi-brand shops like Sephora and Eveandboy in the ASEAN market. Innisfree introduced a localized product for China, the White Peony Tone-up Cream, as part of the brand’s effort to become more responsive to markets. Innisfree’s first shop in Japan has established a firm foothold, and Etude House has gained ground as a global young makeup brand by adding more e-commerce channels for China and ASEAN while seeing robust sales growth in the Japanese market.

      In North America, sales increased by approximately 31% YoY to KRW 15.3 billion due to the launch of Laneige in Sephora alongside robust sales in the Innisfree flagship store. Europe’s sales decreased 54% YoY to KRW 7.6 billion, due to the termination of a brand license (Lolita Lempicka), but still carried forward with the renewal of the brand Annick Goutal to ‘Goutal Paris’ in order to secure competitiveness for new markets.

    Innisfree : Sales at KRW 162.7 billion(-18%); operating profit at KRW 32.9 billion (-29%)

    Sales of Innisfree through duty-free channels and road shops also decreased as a result of declined number of tourists to Korea. Despite the worsening business conditions, Innisfree provided differentiated purchasing experiences using Mini Shops, Green Lounges and Self-checkout services. Product competitiveness was bolstered through product upgrades in signature skincare lines including the Green Tea Seed Serum and Orchid Cream, and also through the launch of new makeup lineups, such as My Lip Balm and My Foundation.

    Etude House : Sales at KRW 64.8 billion (-20%); operating profit turns to loss

    Etude House experienced sluggish duty-free and major commercial zone. Etude House however diversified its product categories and expanded the range of customers through the introduction of new product lineups, such as Mini to Match and Monster Cleansing. The introduction of the digital curating contents service #etudepick, is part of Etude House’s strategy to reinforce communication with customers through digital media.

    Espoir : Sales at KRW 12.4 billion (-1%); operating profit turns to loss

    Launching at a domestic multi-brand cosmetics store (Chicor), Espoir expanded customer touch points during the first quarter. Espoir also expanded its offering of customer experiences by continuously opening stores with various concepts, such as Makeup Market and Makeup Pub.

    Aestura : Sales at KRW 28.2 billion (+2%); operating profit at KRW 1.1 billion (-4%)

    Aestura saw slight growth in sales thanks to inner beauty products such as Atobarrier. Since its deal to sell its filler brand Cleviel, Aestura is focusing its core competence on the area of medical beauty.

    Amos Professional : Sales at KRW 25.9 billion (+1%); operating profit at KRW 7.6 billion (+5%)

    Amos professional saw its sales and operating profit increase with the introduction of its new product, such as It’s Glow and Color Trend Seminar for spring. Amos Academy where specialized education is provided for hair designers also laid the foundation for the continuous growth of the brand.

  • 中国电信安康分公司60家智慧家庭便民服务中心盛大开业中国电信安康-最新活动 2019-08-21
  • [酷]此文已经把马克思理论、边际理论、人类需求层次理论、生物学理论、心理学理论、社会管理学理论等理论在哲学层面完美融合了! 2019-08-21
  • 围绕基本解决执行难问题建言献策 2019-08-20
  • 享受激情世界杯 远离心脑血管疾病 2019-08-20
  • 只有资本主义会关门,社会主义,有无穷的爆发力 2019-08-19
  • 我是家乡代言人 我为新山西点赞——黄河新闻网 2019-08-19
  • 水墨画探索与新现实主义水墨主张 2019-08-17
  • 夏日阳光舒适 大熊猫宝宝悠闲自得 2019-08-16
  • 殷友成.blog的博客—强国博客—人民网 2019-08-16
  • 新华网申领新闻记者证资格审核公示 2019-08-12
  • 天津市宁河区政府原党组成员、副区长李春海接受纪律审查和监察调查 2019-08-12
  • 影驰HOF II DDR4内存发布:液氮超频5.3GHz影驰HOFIIDDR4内存发布-手机行情 2019-08-09
  • 《迷失地铁》 王真儿为角色克服恐水症 2019-08-07
  • 2018欧洲国家消费最低排行榜揭晓 有的比国内游还便宜 2019-08-05
  • “光有米”平台经营者利用花呗套现3.2亿 涉罪被批捕 2019-08-05
  • 黑龙江11选5遗漏值 河南快三走势图近100期 江苏15选5最新开奖 今天篮彩预测推荐冰河 广西快三有多久时间 排列三走势图带连线坐标 列五开奖号 北京十一选五开奖视频 幸运农场开奖最走势图 排列五走势图带连线图 电子游戏中心 体彩20选5计算规则 全国开乐彩 彩票网上购买恢复了吗 Ag亚游