THE WHAT? South Korean cosmetics group Amorepacific reported a 14.3 percent decline in third-quarter net profit, despite higher revenue and operating profit supported by growth across international markets.
THE DETAILS Net profit fell to KRW58.5 billion (US$43.8 million), compared with KRW68.2 billion a year earlier, reflecting unspecified non-operating costs. Revenue increased 11.1 percent to KRW1.12 trillion, while operating profit rose 25.4 percent to KRW115.2 billion. International growth was supported by demand for Aestura and Innisfree across the US, Japan and India, while domestic performance benefited from Hera, Sulwhasoo and double-digit growth across e-commerce, multi-brand retail and duty-free channels. For the first nine months of 2026, net profit increased 17.8 percent to KRW264.84 billion. The company is also pursuing a long-term strategy to increase annual revenue to KRW15 trillion by 2035, focusing on international expansion, AI integration and its cosmetics portfolio.
THE WHY? The results highlight the growing contribution of international markets to South Korean cosmetics manufacturers’ revenue and operating performance, despite continued pressure on overall profitability. Amorepacific’s long-term strategy reflects the increasing importance of geographic diversification, digital distribution and operational investment as K-Beauty companies compete for market share across North America, Europe and Asia.
Source: The Korea Times
