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(LEAD) Amorepacific Q2 net down 88 pct on faltering sales amid pandemic

14:33 July 31, 2020

(ATTN: RECASTS headline, lead; UPDATES with more info throughout)

SEOUL, July 31 (Yonhap) -- Amorepacific Corp. said Friday its second-quarter net profit declined 88.2 percent from a year earlier as sales of its cosmetics at home and abroad were hit by the new coronavirus outbreak.

Net income came to 6.7 billion won (US$5.6 million) in the April-June period, compared with 57.1 billion won from the same period of last year, South Korea's largest cosmetics maker said in a regulatory filing.

Operating income reached 35.2 billion won, down 59.9 percent from a year ago, while sales fell 24.2 percent to 1.06 trillion won.

But the outcome was better than the market consensus of 30.2 billion won in operating profit in a poll conducted by Yonhap Infomax, the financial arm of Yonhap News Agency, on 10 brokerage houses.

The weaker bottom line came as the COVID-19 pandemic hit its cosmetics sales at duty-free outlets, a key sales channel of local cosmetics makers and other offline outlets, it said. Domestic sales declined 26.4 percent on-year to 656.7 billion won.

The company's overseas sales fell 21 percent to 405.4 billion won, with revenues in Asia declining 20 percent on-year to 388.5 billion won. Operating profit generated from its overseas business swung to the red.

Despite faltering offline sales on its home turf, the company saw domestic sales via online channels jump 60 percent.

Online sales of its luxury brands, including Sulwhasoo, in China also gained 70 percent.

Amorepacific Group, parent group of the cosmetics maker, logged a net profit of 5.1 billion won in the second quarter, down 93.1 percent from the previous year.

This photo, provided by Amorepacific Corp., shows the headquarters of the cosmetics company in Seoul. (PHOTO NOT FOR SALE) (Yonhap)

sooyeon@yna.co.kr
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