The Korea Herald

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AmorePacific's Q3 net soars 35% on strong China sales

By KH디지털2

Published : Oct. 30, 2015 - 14:33

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South Korea's top cosmetics maker AmorePacific Co. said Friday its third-quarter earnings jumped 34.9 percent on-year as strong performance in China more than offset sluggish duty-free sales in the wake of the Middle East Respiratory Syndrome outbreak.

Its net earnings came to 142.24 billion won ($124.93 million) in the July-September period on a consolidated basis, compared with 104.45 billion won a year earlier, the company said in a regulatory filing.

Operating income rose 10.7 percent on-year to 163.44 billion won, while sales gained 14.5 percent to 1.14 trillion won, it said.

Sales from overseas branches vaulted 70 percent to 313.1 billion won, as a growing number of Chinese consumers bought its beauty products to mimic Korean celebrities shown in popular dramas and shows. 

Revenue from the mature markets, including France, the United States and Japan, continued to grow on the back of expanded sales channels, and the personal care and tea business also performed well, the company said.

"Sales at domestic duty-free stores temporarily slowed as the number of inbound Chinese tourists dropped following the MERS outbreak in late May, but global duty-free channels fared better thanks to the strong brand power of leading brands," the company said.

The high-end brand Sulhwasoo and the budget line Innisfree posted robust profits in China after the company aggressively increased shops in the fast-growing market, it said.

Etude House, a color makeup brand launched in 1996, saw its operating profit swing into the red, prompting the company to rebrand its princess-theme to better target customers.

AmorePacific uses a multidimensional brand strategy, featuring over 30 in-house brands and fragrance lines for customers in different climates and regions.

Its shares fell 1.05 percent to 377,500 won on the Seoul bourse on Friday, while the benchmark index KOSPI edged down 0.23 percent. (Yonhap)