- Achieved solid growth of sales and operating profit driven by its cosmetics subsidiaries in Korea and abroad
- Amorepacific Corp. posted annual sales growth of 18% due to increased brand power, enhanced distribution and expansion of its overseas business
Amorepacific Group reported sales of KRW 6.6976 trillion in 2016, up 18.3% from the same period last year, and operating profit of KRW 1.828 trillion, up 18.5% from a year earlier. The group achieved continued growth in sales and operating profit, driven by the growth of its cosmetics subsidiaries in Korea and overseas markets.
[Results for 2016] (Consolidated K-IFRS basis)
|KRW bn (%)||2015 YTD||2016 YTD||4Q 2015||4Q 2016|
Results of Major Subsidiaries in 2016
1) Amorepacific Corporation: Sales at KRW 5.6454 trillion (+18%), Operating profit at KRW 848.1 billion (+10%)
Amorepacific Corp. posted a sales growth of 18% to KRW 5.6454 trillion YoY in 2016, boosted by the solid growth of its business in Korea and abroad. The company’s operating profit rose 10% to KRW848.1 billion. The domestic business saw its sales increase by 12% to KRW4.0005 trillion YoY with its operating profit up 6% to KRW677.6 billion, driven by brand power and enhanced retail expertise. The company’s overseas business experienced solid growth through its five Global Champion Brands, namely Sulwhasoo, Laneige, Mamonde, innisfree and Etude. Sales in overseas markets jumped 35% to KRW 1.6968 trillion with an operating profit growth of 32% to KRW 210.5 billion.
- Domestic Business: Sales at KRW 4.0005 trillion (+12%), Operating profit at KRW 677.6 billion (+6%)
Luxury Business reported a solid qualitative growth on the back of a competitive brand portfolio. Sulwhasoo strengthened its position as Asia’s luxury brand through opening flagship stores that provide customers with unique brand experiences. HERA laid a solid groundwork for global expansion by reinforcing its trend-leading ‘Seoulista’ brand story and product lineup. The travel retail channel saw its sales grow substantially buoyed by key brand sales. The growth potential in travel retail was bolstered through the expansion of global and online stores. In the door-to-door channel, the successful establishment of its digital sales platform led to increased customer convenience and greater sales efficiency. Premium Business strengthened core brand values through a variety of marketing activities and new product releases while maintaining sustained growth in its directly-run online store and mobile commerce platform. Mass Business experienced a decrease in sales and operating profit due to the toothpaste recall and a sluggish performance of the oral care segment. In the hair and body care segment, the drive toward premium offerings continued to meet a wider range of customer needs. Ryo and mise en scène brands strengthened their leadership in the hair care market through the increased sales of its best-seller products. In the body care segment, Happy Bath and ILLI enjoyed continued growth driven by a variety of new product releases. The Osulloc Division focused on qualitative growth by enhancing its brand value through a more competitive product lineup and the overhaul of its distribution channels.
- Overseas Business: Sales at KRW 1.6968 trillion (+35%), operating profit at KRW 210.5 billion (+32%)
Overseas business experienced high growth boosted by the five Global Champion Brands, namely Sulwhasoo, Laneige, Mamonde, innisfree and Etude. In Asia, the company recorded a robust sales growth of 38% YoY to KRW 1.5754 trillion. It strengthened its luxury makeup segment by launching HERA in China while Sulwhasoo expanded customer touch points through opening more stores in department stores, as well as road shops and launching into online shopping malls in China. innisfree posted a solid growth based on unmatched brand experience, products and services and accelerated its foray into the ASEAN region by launching in Vietnam. Etude also enjoyed continued growth due to higher brand awareness and robust sales of bestselling products and new releases, including Play 101 Pencil, Real Powder Cushion, etc. In North America, the company posted sales growth of 10% by expanding its business in Canada with new shops in department stores and specialty stores for the Sulwhasoo and Laneige brands, as well as expanded distribution network and optimized product portfolio. In Europe, the company saw its sales increase by 4% due to sales growth of key products.
2) innisfree: Sales at KRW 767.9 billion (+30%), Operating profit at KRW 196.5 billion (56%)
innisfree reinforced its brand attractiveness by launching global brand campaigns such as “Play Green Festival” and offering richer customer experience through stores doubling as cafes as well as innovative Virtual Reality services etc. The brand achieved sales growth boosted by greater sales of the Jeju Heritage products [Green Tea Seed Serum, Jeju Volcanic Pore Clay Mask, and Jeju Orchid Enriched Cream etc.] and new product releases such as Jeju Lava Sea Water, My Cushion. Profitability also improved thanks to greater efficiency in the distribution channels and sales growth in online and duty-free channels.
3) Etude: Sales at KRW 316.6 billion (+23%), Operating profit at KRW 29.5 billion (+1,153%)
Etude achieved a robust sales growth with successful product releases including Play 101 Stick and Brow Gel Tint. The overall growth was driven by greater sales at the existing stores and dramatic sales increase in its online and duty-free channels, while profitability also improved significantly buoyed by the higher efficiency of its distribution channels.
4) eSpoir: Sales at KRW 37.8 billion (+26%), Operating loss narrowed (- KRW 900 million)
eSpoir saw its sales and profitability improve due to increased sales of its key products such as No Wear Lipstick and Pro Tailor Foundation. The brand enhanced its attractiveness as a professional makeup brand by offering a variety of customer services.
5) Aestura: Sales at KRW 103.3 billion (+12%), Operating profit turning black (KRW 2.1 billion)
Aestura achieved sales growth driven by greater sales of its inner beauty products as well as its key medical beauty brand, ATO Barrier. Profitability also increased through higher cost efficiency.
6) Amos Professional: Sales at KRW 79.3 billion (+23%), Operating profit at KRW 16.1 billion (+22%)
Amos Professional delivered solid sales growth buoyed by robust sales of its key products including Feel the Green Tea and Colorgenic True Sync line, and its premium hair salon brand AYUNCHE. The brand is enhancing its brand awareness through a variety of marketing activities such as Salon Inspiration events and pictorials etc.