The first quarter earnings of South Korea's top two beauty giants, Amorepacific and LG Household ⁘ Health Care, have been largely shaped by their approaches to international market diversification beyond China.
In the January–March period, Amorepacific Holdings reported consolidated revenue of 1.16 trillion won ($817 million), up 15.7 percent from a year earlier, with operating profit climbing 55.2 percent on-year to 128.9 billion won.
Noticeable in the company's profit growth was the strong performance of its overseas markets, where sales surged 40.5 percent on-year to 473 billion won, and operating income profit more than doubled to 69.6 billion won.
This upswing stemmed from Amorepacific's global rebalancing strategy, spanning North America as well as Europe, the Middle East and Africa.
Sales in the Americas surged 79 percent, fueled by aggressive product rollouts from flagship brands -- Laneige, Innisfree and Sulwhasoo -- alongside robust performance from skin care brand Cosrx, which was newly consolidated into the company's earnings.
Yet, in the Greater China region, overall sales declined, while improved cost efficiencies and streamlined operations led to a modest return to profitability. Meanwhile, in other parts of Asia, strong performances from both flagship and emerging brands fueled a 53 percent surge in sales.
The move led to a sharp decline in Chinese tourism to Korea, along with reduced exports of Korean food and cosmetics.
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