AmorePacific has reported a Q1 net profit drop of 31 percent year on year on increased costs. However, the beauty segment saw a 1 percent revenue rise.
According to a regulatory filing the company’s net profit hit 122 billion won for the period January to March, as opposed to 177 billion won for the previous year. The fall was put down to AmorePacific’s continued investment into luxury as it moves forward with its overseas expansion.
The rise in beauty revenue was attributed to strong sales of its Sulwhasoo brand in the travel retail sector with new brands and campaigns also helping with the boost.
Despite the revenue increase, operating profit for the beauty category fell 21 percent, which was due to decreased revenue in its domestic channel.