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| ▲ An employee walks in the Amorepacific headquarteres located in Seoul, on May 18, 2022. (Yonhap) |
(LEAD) Amorepacific Group-Q3 earnings
(LEAD) Amorepacific Group's net income drop 29 pct in Q3
SEOUL, Oct. 31 (Yonhap) -- Amorepacific Group's suffered steep losses in its top and bottom line figures announced Monday, as the group reels from China's economic slowdown.
Net income was 32.3 billion won (US$22.7 million) on a consolidated basis for the three months ending in September, down 29 percent from the same period a year earlier, the group said in a regulatory filing.
Operating profit for the July-September period dropped 36.2 percent on-year to 33 billion won. Sales fell by 15.9 percent to 1.02 trillion won.
"We faced many challenges in the third quarter such as a slowdown in the Chinese market and rising raw material costs, but made efforts to create business achievements" it said in a statement.
The group's domestic business suffered a near 50 percent drop in operating profit from sluggish sales at duty free stores, the group's most lucrative sales channel.
Its global business swung to the red in the third quarter to an operating loss of 9.2 billion won due to lackluster sales in China.
Business efforts in North America, however, bore fruit following the group's efforts to pioneer new markets in the U.S. where demand for K-beauty products is growing.
As part of the goal, the group acquired Tata Harper, a U.S. natural skin care brand, in September for 168 billion won.
Sales in North America surged 97 percent thanks to growing presence of the group's key brands, it said.
Amorepacific said it will focus on strengthening its skincare brands, while making efforts to improve corporate structure, increase profitability and accelerate digitization.
The cosmetic giant houses various beauty brands ranging from Laneige, espoir, Etude House and a tea brand called Osulloc.
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