South Korean beauty conglomerate Amorepacific witnesses significant slump in revenue
Leading South Korean cosmetics conglomerate Amorepacific Group has just reported second-quarter net income of KRW5.1 billion ($4.3 million), which is a major drop back against its usual performance.
South Korean beauty giant Amorepacific has seen double-digit drops in revenue
Notably, Amorepacific has witnessed a dramatic decrease of 93.2 per cent compared to its performance a year earlier.
The company said in a regulatory filing that it posted KRW36.2 billion ($30.4 million) in operating profit for the quarter, compared with KRW110.4 billion ($92.56 million) last year. Revenue fell 24.7 per cent to KRW1.18 trillion ($989.18 million).
Operating income for the April-June period was KRW35.2 billion, down 59.9 perc ent from a year ago, the company said in a regulatory filing. Sales fell 24.2 per cent to KRW1.05 trillion ($880.2 million), according to Yonhap.
Amorepacific is the largest South Korean beauty conglomerate with various brands such as Innisfree, Sulwhasoo, Laneige, and Etude. The giant is present in Southeast Asia, including Vietnam, Thailand, Malaysia, and more.
Amorepacific once harboured ambitions of using the Southeast Asian market as a stepping stone for its vision to become a "Great Company" and ensure its beauty predominance in Asia.
Previously, the group predicted that its cosmetics market in 10 countries of Southeast Asia would grow to KRW6.2 trillion ($1.2 billion) by 2020.
Currently, Amorepacific has an extensive network in major cities of Vietnam, such as Hanoi and Ho Chi Minh City.
Besides, the South Korean player aims to invigorate its online business in the region by cooperating with e-commerce giants such as Lazada.