AMOREPACIFIC (002790) Q3 2024 earnings summary

Executive summary

• Revenue increased 10.9% year-over-year to 1.1 trillion KRW, with operating profit up 160.5% to 75.0 billion KRW and net profit up 23.8% to 51.6 billion KRW.

• Major subsidiary Amorepacific saw revenue rise 9.9% to 977.2 billion KRW and operating profit surge 277.7% to 65.2 billion KRW.

Financial highlights

• Group gross profit margin was 71.3%, with operating margin improving to 7.0% from 3.0% year-over-year.

• SG&A expenses rose 3.6%, while marketing and depreciation costs increased 17% each.

• Net income margin improved to 4.8% from 4.3% year-over-year.

Outlook and guidance

• Overseas business momentum, especially in Western regions and Other Asia, is expected to continue driving growth.

• Domestic restructuring and premiumization efforts are ongoing to improve profitability.