Amore Pacific's Earnings Soar as China Returns to Normal

Amore Pacific has emerged from a lackluster year to attain a substantial turnaround in earnings in the first quarter thanks to recovered demand in China, which makes up about 90 percent of its overseas sales.

Amore Pacific's January-to-March sales rose 10.8 percent on-year to W1.25 trillion, while operating profit surged 189.2 percent to W176.2 billion (US$1=W1,123).

Life found in China is time for normal after the government claimed "victory" more than the coronavirus pandemic and sales there pushed up Amore Pacific's overseas revenues to go up 19.6 percent to W447.4 billion. Overseas functioning profit also shifted into the black at W52.3 billion.

Sales found in Hainan, home to the world's biggest duty-free shop, surged 410 percent since it focused marketing efforts on duty-free stores to benefit from the Chinese government relaxing duty-free restrictions to improve usage. The Korean company produced an alliance last October with CDFG, the world's greatest duty-free retailer operator, and rolled out tailored products.

In March, Amore Pacific invested tens of billions to open a pop-up retailer lounge in CDFG's retailer in Haitang Bay, which was featured by many online broadcasters and drew an incredible number of hits, while the tailored products at the retailer sold out.

Another factor is normally that it has strengthened its web business. "The time has gone when people thought products sold over the internet should be cheap. We will sell extra of our premium cosmetics on the e-commerce market and increase on the net sales by more than thirty percent," an Amore Pacific staffer said.