Amorepacific (090430) Q3 2024 earnings summary

Executive summary

• Revenue increased 9.9% year-over-year to 977.2 billion KRW, driven by strong overseas growth despite a slight domestic decline.

• Operating profit surged 277.7% to 65.2 billion KRW, with both domestic and overseas businesses improving profitability.

• Net income rose 39.5% year-over-year to 37.2 billion KRW.

Financial highlights

• Gross profit grew 11.3% year-over-year to 683.4 billion KRW, with gross margin improving to 69.9%.

• SG&A expenses increased 3.6%, mainly due to higher marketing and depreciation costs.

• Marketing expense rose 17% and depreciation cost increased 16.8% year-over-year.

Outlook and guidance

• Enhanced profitability expected from continued overseas expansion and premium product focus.

• Ongoing restructuring in Greater China may impact short-term performance but aims to strengthen long-term growth.