Amorepacific (090430) Q2 2024 earnings summary

Executive summary

• Revenue declined 4.3% year-over-year to 904.8 billion KRW, with operating profit down 29.5% to 4.2 billion KRW.

• Net income surged to 530.6 billion KRW, driven by significant other income, despite lower operating profit.

• Domestic business revenue fell 7.8%, while overseas business grew 2.5%, led by strong Western region performance.

Financial highlights

• Gross profit margin improved to 70.5% from 68.1% year-over-year.

• SG&A expenses decreased 0.7% year-over-year, with personnel expense up 4.7% and marketing expense down 2.9%.

• Net income rose sharply due to a one-time gain in other income.

Outlook and guidance

• BY25 goal targets late-teen revenue growth and high single-digit operating profit margin, including COSRX consolidation.

• Strategic focus on global market expansion (US, UK, Japan, India) and normalization of China business.