Asia300

AmorePacific Group, Inc.

South Korea

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
Apr 26, 2017
Prev close: 131,000
Apr 26, 2017
Market cap:
Market cap(USD):
11,188.00B
9,944.00M
Shares: 88.90M

Currency in KRW

Company profile

Market(Ticker): KRX(002790)
Sector:
Industry:
Consumer Non-Durables
Household/Personal Care
Full time employees: --

Business summary

AmorePacific Group, Inc. is a holding company that engages in the management of its subsidiaries. Through its subsidaries, it offers cosmetics, hair care, medical products, cosmetic glass containers, tea raw materials, and printing equipment. The company was founded on March 6, 1959 and is headquartered in Seoul, South Korea.

Company background

AmorePacific Group, the largest cosmetics producer in South Korea, has seen its sales growing in China and Southeast Asia on the back of hallyu, the "Korean wave" of pop culture. To keep up with rising demand, the company built a state-of-the-art factory in China that has an annual production capacity of 13,000 tons. The plant began operating in 2014. AmorePacific aims to become Asia's top cosmetics maker with sales of 12 trillion won by 2020.

The company's global sales come largely from five main brands: Sulwhasoo, Laneige, Innisfree, Etude and Mamonde. Its luxury lines, including Sulwhasoo, are particularly popular among tourists visiting South Korea from abroad. This has contributed to higher sales at duty-free shops.

AmorePacific produces its midtier brands, including Mamonde, at its new factory in China, though it continues to export its high-end products from South Korea. In addition to its existing sales channels, such as department stores and hypermarkets, the company is also focusing on online sales. The company improved its distribution system in China in time for the startup of the new factory, reducing delivery times for shipments to any part of the country.

AmorePacific was founded in 1945. Chairman Suh Kyung-bae, a member of the company's founding family, earned an MBA from Cornell University in the U.S. His understanding of overseas strategy can be seen in how he rebuilt the group's French subsidiary. Robust growth in purchases by foreign tourists has boosted AmorePacific's market capitalization dramatically. As a result, Suh, the company's largest shareholder, is known as one of the richest men in South Korea.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 6,697.56B
Gross profit 4,919.38B
Operating income 1,082.81B
Income before tax 1,086.66B
Net income 342,394.11M
EBITDA 1,303.84B
Diluted EPS 4,240.74
Dividends per share 460
Total assets 7,088.39B
Total liabilities 1,521.51B
Total equity 2,833.24B
Operating cash flow 878,070.42M

Currency in KRW

Revenue 5,772.81M
Gross profit 4,240.15M
Operating income 933.30M
Income before tax 936.62M
Net income 295.11M
EBITDA 1,123.82M
Diluted EPS 3.65
Dividends per share 0.39
Total assets 5,868.84M
Total liabilities 1,259.74M
Total equity 2,345.78M
Operating cash flow 756.83M

Currency in USD

Valuation measures

Dec 2016

PER 31.36
ROA 5.17%
ROE 12.76%
Operating margin 16.16%
Profit margin 5.11%

Key executive

  • Chairman & Co-Chief Executive Officer: Kyung-Bae Suh
  • President, Co-Chief Executive Officer & Director: Dong-Hyun Bae
  • Director & Executive Director-Group Strategy: Seung-Hwan Kim
  • Auditor: Young-Cheol Son
  • Managing Director-Audit Office: Sang-Ho Lee

Share holders

  • SUH KYUNG-BAE(53.8%)
  • AmorePacific Group, Inc.(6.7%)
  • National Pension Service of Korea(5.8%)
  • SUH MIN-JUNG(2.9%)
  • Sungwhan Welfare Fund(2.7%)
  • Amorepacific Welfare Foundation(1.7%)
  • Aberdeen Asset Managers Ltd.(1.0%)
  • Fidelity Management & Research Co.(0.9%)
  • BlackRock Fund Advisors(0.7%)
  • Norges Bank Investment Management(0.7%)

Address

  • Website: http://www.amorepacific.com
  • Address: 100 Cheonggyecheon-ro, Jung-gu, Seoul, 04542, South Korea
  • Phone: +82.2.709.5114

Copyright © 2017 FactSet Research Systems Inc. All rights reserved.