Amorepacific FY2023: Growth Japan, Americas, EMEA not enough to offset China decline

Amorepacific FY2023 Growth Japan Americas EMEA not enough to offset China decline

Amorepacific’s latest full-year results show that growth across multiple markets including the US was not enough to offset the slump in China, leaving its overseas business unit in the red.

On January 30, the South Korean beauty conglomerate revealed a significant operating profit loss in its overseas business unit in its 2023 financial year report.

The company reported an operating profit loss of KRW43.2bn (USD32.5m) while revenue decreased by 6% overall to KRW1.39tn (USD1.04bn).

The declines were mainly attributed to China, where revenues reported a decline of “mid-20%”, said the firm.

Its latest fourth-quarter report showed that China’s revenues dropped by a whopping 40%.

China accounted for around 50% of Amorepacific’s overall business in Asia, excluding its home market.

The company attributed the overall revenue decrease to “brand renewals, restructuring of offline stores, and downsizing inventory in major channels.”

Meanwhile, the company reported better results in other markets.

In Japan, revenue grew by 30% with strong growth observed in Laneige and Innisfree. The launches of Hera and Aestura also bolstered the growth.

South East Asian (SEA) market remained flat. In particular, Laneige saw strong sales of key products.

The overseas Asian markets excluding China saw operating profits increase.

Amorepacific also saw growth in the Western markets.

The Americas region grew by 58% as it strengthened its major brands through offline channel expansion and by enhancing product lineup.

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