Amorepacific (090430) Q1 2025 earnings summary

Executive summary

• Revenue rose 17.1% year-over-year to 1.07 trillion KRW, driven by strong overseas growth and COSRX consolidation.

• Operating profit increased 62.0% to 117.7 billion KRW, with overseas profit up 120% and domestic profit stable.

• Net income climbed 48.5% to 119.0 billion KRW, with improved gross margin and cost controls.

Financial highlights

• Gross profit margin improved by 1.2 percentage points to 72.1% due to better manufacturing costs and product mix.

• SG&A expenses rose 13.7%, with personnel expenses up 29% from one-off incentive provisions.

• Depreciation cost increased 28.8% due to COSRX intangible asset amortization.

Outlook and guidance

• Overseas expansion and COSRX integration expected to continue driving growth, especially in Western and Asian markets.

• Focus on product innovation, omni-channel marketing, and cost efficiency to sustain profitability.