AmorePacific Group reported its revenue increased 21% to 4.7119 trillion Korean won (KRW) and the operating profit jumped 40.3% to 659.1 biliion KRW from the previous year in 2014.
Thanks to the growth in and out of the country among AmorePacific Group’s cosmetic affiliates, AmorePacific reported robust increase in annual revenue and operating profit as well. It is noteworthy that AmorePacific saw the increase of sales(+25%) up to 3.8740 trillion KRW despite a subdued market by enhancing its brand power, innovating its distribution channels and expanding its business abroad.
In particular, the annual revenue and operating profit of AmorePacific Group’s cosmetic affiliates reached 4.4678 trillion Korean won(+23.3%) and 663.8 billion Korean won(+44.2%) respectively, of which AmorePacific recorded 3.8740 trillion Korean won(+25.0%) of revenue and 563.8 billion Korean won(+52.4%) of its operating profit in 2014.
On the other hand, Innisfree ‘s revenue and operating profit recorded 456.7 billion Korean won(+37%) and 76.5 billion Korean won(+54%), and Amos Professional’s revenue and operating profit increased up to 54.6 billion Korean won(+12%) and 11.6 billion Korean won(+1%) respectively. On the contrary, ETUDE’s revenue and operating profit decreased to 306.5 billion KRW (-9%) and 5.6 billion KRW(-79%) respectively. The y-o-y decrease in ETUDE’s revenue and operating profit was attributed to shrinking exports by decrease in trades with overseas agents and growing investment in global marketing to improve its brand power.
When it came to non-cosmetic affiliates, their revenue and operating profit reached 244.2 billion Korean won (-9.8%) and minus 4.7 billion Korean won (deficit conversion) respectively. Pacific Pharma. saw its revenue and earnings decreased to 79.1 billion Korean won(-37%) and minus 3.6 billion Korean won(-186%) respectively by handing over its pharmaceutical business. In regard to medical beauty field, Pacific Pharma. enjoyed high growth in Atobarrier, its flagship and Cleviel, its new product, resulting in consecutive double-digit growth(+15%) and firmer presence in the market. The company explained that the increase in marketing investment to sharpening its competitiveness as the one specialized in medical beauty made its earnings reduced.
Meanwhile, PACIFICGLAS showed increase in its revenue up to 64.1 billion KRW(+5%) based on the growth of AmorePacific’s cosmetic affiliates but it has maintained deficit in operating profit because of mounting cost of retrofitting facilities.
By Kim Yu-na