By Kim Han-joo
SEOUL, July 31 (Yonhap) -- South Korean cosmetics giant AmorePacific Corp. said Wednesday that its second-quarter net profit dipped 47.9 percent from a year earlier on increased costs.
Net profit reached 57.1 billion won (US$48.3 million) on a consolidated basis during the April-June period, compared with 109 billion won for the same months the previous year, the company said in a regulatory filing.
Operating profit plunged 39.8 percent on-year to 87.8 billion won, compared with 145.8 billion won a year earlier, while sales moved up 3.7 percent on-year to 1.39 trillion won, it said.
The company attributed the weak performance to increased marketing costs in the local market, coupled with continued investment in overseas markets, such as North America and Europe.
"AmorePacific has shown sales growth in overseas businesses, such as Asia and North America, but losses were made due to increased investments in the global market to raise brand power and expand distribution channels," the company said in a press release.
The combined operating income of Amorepacific Group, which includes smaller brands, like Innisfree and Etude House, reached 110.4 billion won in the first quarter, also down 35.2 percent from a year ago. Sales inched up 1 percent on-year to 1.57 trillion won during the cited period.
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