Korean cosmetics company AmorePacific has reported a 1% increase in beauty revenues in Q1 2019 to KRW1.431 trillion (US$1.23 billion) against the same period last year. However, operating profits for the category plummeted by -21%.
It partly attributed the rise to stronger sales of its skincare brand Sulwhasoo in the travel retail channel. New products from the brand and various promotions and campaigns contributed to the increase, the company said.
AmorePacific also pointed to enhanced competitiveness through the concentration on key categories of each of its brands as a major factor in its overall beauty revenue growth.
Despite these positive moves, AmorePacific’s operating profits for the beauty category slumped by -21% to KRW186.6 billion (US$160.9 million). The company said this was due to decreased revenue in the domestic channel, excluding travel retail and online sales.
The overall Q1 results for AmorePacific, including non-beauty business interests, were weaker than for the beauty category alone, with revenue down -1.3% to KRW 1.6 trillion (US$1.38 billion), and operating profit down -26.3% to KRW 204.8 billion (US$176.56 million).
