SEOUL– Amorepacific Group, South Korea’s leading cosmetics firm, said Thursday it shifted to a net loss in the second quarter from a year earlier due to challenging market conditions and faltering sales in China over COVID-19 lockdowns.
Amorepacific swung to a net loss of 26 billion won (US$19.9 million) in the three months ended in June from a net profit of 142.8 billion won a year ago, the company said in a regulatory filing.
“Amorepacific faced great challenges from uncertain market conditions inside and outside of the country. The company was unable to avoid an overall slump in performance faced with the spread of COVID-19 and lockdowns placed in major Chinese cities,” the company said in a statement.
The company said it shifted to an operating loss of 10.9 billion won in the April-June period from an operating profit of 104.6 billion won a year ago.
Sales fell 21.3 percent to reach 1.02 trillion won.
Major losses came from its Asia business, where sales plunged 33.2 percent on-year to 297.2 billion won amid lockdowns in Shanghai.
Losses however were slightly offset by a 66 percent increase of sales in the United States, led by growing online purchases of its Laneige and Sulhwasoo brands.
The group also saw operating gains at its smaller affiliates. The second-quarter operating profit for its Etude cosmetics brand inched up 9 percent, while its tea franchise, Osulloc, went up by 28.7 percent on-year to 800 million won.
Source: Yonhap News Agency