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(LEAD) Amorepacific's net income down 37.2 pct in 2019

All News 14:49 February 05, 2020

(ATTN: CHANGES headline, lead; ADDS more info throughout, photo)

SEOUL, Feb. 5 (Yonhap) -- South Korean cosmetics company AmorePacific Corp. said Wednesday that its net profit for 2019 dipped 37.2 percent from a year earlier on increased costs.

Net profit reached 210.4 billion won (US$177.2 million) on a consolidated basis last year, compared with 334.8 billion won for the previous year, the company said in a regulatory filing.

This undated photo, provided by AmorePacific Corp., shows the company's headquarters in Seoul. (PHOTO NOT FOR SALE) (Yonhap)

Operating profit was down 11 percent on-year to 427.8 billion won, while sales moved up 6 percent on-year to 5.5 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.

The combined operating income of Amorepacific Group, which includes smaller brands like Innisfree and Etude House, reached 269 billion won last year, down 28.5 percent from a year earlier. Annual sales, meanwhile, increased 3.4 percent to 6.28 trillion won.

The company said it is the first time the entire group has reaped over 2 trillion won in sales in overseas markets.

The cosmetics giant said it will continue to make inroads into global markets by diversifying its brand portfolio, especially in the fast-growing Asian market.

khj@yna.co.kr
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