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Consumer Non-Durables

AmorePacific Group, Inc.

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.

Business Summary

AmorePacific Group, Inc. is a holding company which 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.

Financial Highlights

Dec 2020 KRWUSD
Revenue4,930.08B4,178.43M
Gross Profit3,122.40B2,646.36M
Operating income150,661.04M127.69M
Income before tax29,907.75M25.34M
Net income10,381.31M8.79M
EBITDA684,632.04M580.25M
Diluted EPS74.540.06
Dividends Per Share2300.19
Total Assets7,788.74B7,169.97M
Total liabilities1,516.70B1,396.20M
Total equity3,249.54B2,991.38M
Operating cash flow667,033.61M565.33M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 6,697.56B 6,029.06B 6,078.17B 6,284.25B 4,930.08B
Gross Profit 4,919.38B 4,237.12B 4,251.57B 4,170.25B 3,122.40B
Operating income 1,082.81B 731,492.19M 549,473.51M 498,249.81M 150,661.04M
Income before tax 1,086.66B 697,212.72M 533,901.07M 430,717.08M 29,907.75M
Net income 342,394.11M 202,614.25M 142,286.12M 133,732.55M 10,381.31M
EBITDA 1,303.84B 999,788.19M 860,037.51M 1,076.19B 684,632.04M
Diluted EPS 4,241 2,433 1,708.32 1,444.86 74.54
Dividends Per Share 460 360 310 300 230
Total Assets 7,088.39B 7,335.23B 7,387.37B 8,281.39B 7,788.74B
Total liabilities 1,521.51B 1,403.26B 1,144.90B 1,801.24B 1,516.70B
Total equity 2,833.24B 2,997.27B 3,118.83B 3,367.32B 3,249.54B
Operating cash flow 878,070.42M 592,284.56M 731,837.84M 831,147.66M 667,033.61M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,772.81M 5,333.04M 5,523.01M 5,388.73M 4,178.43M
Gross Profit 4,240.15M 3,747.97M 3,863.25M 3,575.98M 2,646.36M
Operating income 933.30M 647.04M 499.28M 427.24M 127.69M
Income before tax 936.62M 616.72M 485.13M 369.33M 25.34M
Net income 295.11M 179.22M 129.29M 114.67M 8.79M
EBITDA 1,123.82M 884.36M 781.48M 922.83M 580.25M
Diluted EPS 3.65 2.15 1.55 1.23 0.06
Dividends Per Share 0.39 0.31 0.28 0.25 0.19
Total Assets 5,868.84M 6,851.83M 6,620.69M 7,161.04M 7,169.97M
Total liabilities 1,259.74M 1,310.78M 1,026.08M 1,557.56M 1,396.20M
Total equity 2,345.78M 2,799.75M 2,795.15M 2,911.77M 2,991.38M
Operating cash flow 756.83M 523.90M 664.99M 712.70M 565.33M

Valuation Measures

Dec 2020
PER736.43
ROA0.12%
ROE0.31%
Operating margin3.05%
Profit margin0.21%

Key executives

  • Chairman & Co-Chief Executive Officer: Kyung-Bae Suh
  • President, Co-Chief Executive Officer & Director: Dong-Hyun Bae
  • Senior MD, Head-Finance & Legal Counsel: Sang-Mok Lee
  • Director, Senior MD & Head-Human Resources: Seung-Hwan Kim

Shareholders

  • SUH KYUNG-BAE (53.7%)
  • AmorePacific Group, Inc. (7.5%)
  • National Pension Service of Korea (5.0%)
  • SUH MIN-JUNG (2.9%)
  • Sungwhan Welfare Fund (2.7%)
  • Fidelity Management & Research Co. LLC (2.5%)
  • Amorepacific Welfare Foundation (1.7%)
  • BlackRock Fund Advisors (1.2%)
  • The Vanguard Group, Inc. (0.8%)
  • Norges Bank Investment Management (0.5%)

Contact Details

Related Companies

  • Amorepacific Ventures
  • Amorepacific Cosmetics (Shenyang) Co., Ltd.
  • AMOS Professional Corp.
  • Pacific Europe SA
  • Pacific Pharmaceutical Co., Ltd.

Competitors

  • Estee Lauder Companies Inc. Class A
  • KT & G Corporation
  • Hankook Cosmetics Co., Ltd
  • Greencross WellBeing Corporation
  • Leaders Cosmetics Co., Ltd
  • KODI CO., LTD.
Last Updated on 15 Oct, 2021

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