AMOREPACIFIC (002790) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.9% year-over-year to 1.1 trillion KRW, with operating profit surging 555.5% to 80.1 billion KRW.

• Major subsidiary Amorepacific posted 11.1% revenue growth and a 1673% jump in operating profit.

• Net profit declined 90.5% year-over-year to 50.8 billion KRW, impacted by non-operating items.

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% through cost optimization, while personnel expenses rose 10% from incentive payouts.

• Commission expenses increased 13% with higher domestic travel retail sales.

Outlook and guidance

• Domestic and overseas businesses both showed strong growth, with Greater China turning profitable for two consecutive quarters.

• Continued focus on premiumization, channel expansion, and cost control expected to support future profitability.