AmorePacific’s second quarter operating profit rise 30.6 percent year-on-year to 170.3 billion won out of total sales of 1.553,7 trillion won in the quarter, up 10 percent over the same time period, the cosmetics giant said July 26.

Analysts said increases in sales for its leading cosmetics products, including Sulwhasoo and Laneize, pushed the record revenue, along with overseas sales and foreign tourists converging again on the AmorePacific’s duty free shops around the country. The figures were especially helped by Chinese tourists since the Chinese government eased its THAAD retaliatory measures against Korea. The net profit in Q2 rose 27 percent YoY to 126.9 billion.

Although rival LG’s balance sheet looks distinctly healthy, the Chinese boycott is continuing to affect profits at AmorePacific. According to a report published by a local newspaper, the K-beauty behemoth saw net profit dive 20.9 percent in the first quarter of the current financial year compared to the same period a year ago.
Net income weighed in at 176.7 billion won, down sharply from the 223.5 billion registered last year, whil

e operating profit plunged 25.5 percent to 235.9 billion won and sales fell 8.8 percent to 1.43 trillion won.
Net income for the AmorePacific Group was 216 billion won, down 18.9 percent from the same period last year while the group’s operating profit declined 25.5 percent to 278 billion won and sales were down 10.3 percent to 1.66 trillion won.

AmorePacific blamed the lackluster performance on Chinese tourists following the THAAD crisis.
Its online beauty sales increased during the period thanks to customized.

China’s share of AmorePacific’s total sales has grown from 7.4 per cent in 2011 to 19.3 per cent in 2016. But during the past year Beijing has retaliated against Seoul for agreeing to deploy a U.S.-built THAAD missile shield to defend against a possible attack by North Korea, banning Chinese tour groups from visiting South Korea and tightening broadcast restrictions on South Korean cultural content.

While viable domestic competition in China for AmorePacific-owned brands like Innisfree and Sulwhasoo has yet to emerge, quiet restrictions on Korean culture in Chinese media, including unofficial bans on the broadcast of popular television shows, may be to blame for a slight fall in the popularity of Korean cosmetics brands among younger consumers.

Adopting the theme, “A MORE Beautiful World,” the conglomerate unveiled its 10th Sustainability Report since the initial report in 2009, marking a first in the Korean beauty industry.
The Group’s 2017 Sustainability Report relays the company’s activities and performance of sustainable management exercised in 2017 as it strives to continue its “inclusive growth with customers, environment and society.

The leading beauty player has released sustainability reports every year since its first in 2009, marking 10 years of commitment to its sustainability initiatives and a vitalizing first for the Korean beauty industry.

To celebrate its past decade, its 2017 report sets out the company's plans to continue to work towards “A MORE Beautiful World.” The sustainability report outlines its management activities and performance as the company strives to meet its 2020 sustainability endeavors.

AmorePacific Group announced and set out the agenda of its 2020 sustainability commitments in 2017, emphasizing its three core pillars: seeking to help create a sustainable lifestyle in everyday lives; achieving inclusive growth with economic and social communities; and contributing to the circular economy for future generations.

To move forward with its aim of creating a sustainable lifestyle, AmorePacific has pledged to improve sustainability in all stages of its cosmetics and personal care creation, from product development to disposal.

An ad for Sulwhasoo Bloomstay Cream. (Photo: AmorePacific)