THE WHAT? Amorepacific has announced a Q2 net profit fall of 88.2 percent YOY as both domestic and global cosmetic sales were hit hard by COVID-19.
THE DETAILS Sales faltered in the April-June period, with net income reported at 6.7 billion won (US$5.6 million) compared to 57.1 billion won for the same period in 2019.
While operating profit was down 59.9 percent to 35.2 billion won, it was marginally better than market predictions of 30.2 billion as per a poll conducted by Yonhap Infomax.
Sales fell 24.2 percent to 1.06 trillion won, while domestic sales dropped 26.4 percent YOY to 656.7 billion won.
However, the company’s online activity was more positive, with domestic sales via this channel rising 60 percent while luxury brands in China, such as Sulwhasoo, rose 70 percent online.
THE WHY? Amorepacific has become the latest company to fall foul of the devastating financial consequences of the global pandemic. Indeed, according to the company, coronavirus also affected cosmetic sales at duty-free outlets – a key sales channel.