Amorepacific (090430) Q2 2025 earnings summary

Executive summary

• Revenue rose 11.1% year-over-year to 1.0 trillion KRW, with both domestic and overseas businesses contributing to growth.

• Operating profit surged 1673.4% year-over-year to 73.7 billion KRW, driven by improved profitability in both domestic and overseas segments.

• Net income dropped 92.9% year-over-year to 37.6 billion KRW, impacted by a significant decrease in other income.

Financial highlights

• Gross profit margin improved by 2.1 percentage points to 72.6% due to stricter promotion control and enhanced brand mix.

• Marketing expenses decreased 11% year-over-year, reflecting company-wide cost optimization.

• Personnel expenses increased 10% year-over-year due to performance-based incentives.

• Commission expenses rose 13% year-over-year, linked to higher domestic travel retail sales.

Outlook and guidance

• Continued focus on premiumization and global expansion, with strong momentum in travel retail and e-commerce channels.

• Ongoing restructuring and cost control measures expected to support profitability, especially in Greater China.