Seoul: Amorepacific Corp., South Korea's leading cosmetics company, announced that its first-quarter net profit experienced a 5 percent decline from the previous year, primarily due to a base effect. Net profit for the quarter ending in March decreased to 113 billion won (US$76.6 million) from 119 billion won in the same period last year, as stated in a regulatory filing.
According to Yonhap News Agency, the decline was largely due to the absence of one-off gains that were recorded in the previous year. A company spokesperson explained, "In the first quarter of 2025, one-off gains from the sale of intellectual property rights for French perfume brand Goutal were reflected, but no such gains were recorded this quarter."
Despite the drop in net profit, Amorepacific reported a 7.6 percent increase in operating profit, amounting to 126.7 billion won, up from 117.7 billion won during the same period. Sales also climbed 6.4 percent to 1.13 trillion won from 1.07 trillion won. The company attributed its overall performance to solid growth in key overseas markets like the United States and Japan, driven by strong demand for premium brands such as Hera, Laneige, and Aestura, supported by the continued global popularity of K-beauty products.
Amorepacific's earnings also benefited from equity income from COSRX, which it acquired in 2023. COSRX's earnings have been consolidated into Amorepacific's results since May 2024.
In a separate announcement, the company shared its long-term growth strategy, unveiled in September last year, aiming to nearly triple sales to 15 trillion won by 2035, up from 4.25 trillion won in 2025. The strategy focuses on expanding in five key markets-North America, Europe, China, India and the Middle East, and Japan and Southeast Asia-while also growing its beauty solutions business and increasing the use of artificial intelligence in operations. These regions account for roughly 80 percent of global cosmetics sales.