AmorePacific Group, Inc.

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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. engages in the management of its subsidiaries. Through its subsidiaries 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 2021	KRW	USD
Revenue	5,326.08B	4,650.95M
Gross Profit	3,538.41B	3,089.88M
Operating income	356,171.27M	311.02M
Income before tax	423,914.06M	370.17M
Net income	179,995.03M	157.17M
EBITDA	770,639.27M	672.95M
Diluted EPS	1,988.57	1.73
Dividends Per Share	450	0.39
Total Assets	8,038.14B	6,761.84M
Total liabilities	1,562.51B	1,314.42M
Total equity	3,306.53B	2,781.52M
Operating cash flow	763,409.42M	666.64M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	6,029.06B	6,078.17B	6,284.25B	4,930.08B	5,326.08B
Gross Profit	4,237.12B	4,251.57B	4,170.25B	3,122.40B	3,538.41B
Operating income	731,492.19M	549,473.51M	498,249.81M	150,661.04M	356,171.27M
Income before tax	697,212.72M	533,901.07M	430,717.08M	29,907.75M	423,914.06M
Net income	202,614.25M	142,286.12M	133,732.55M	10,381.31M	179,995.03M
EBITDA	999,788.19M	860,037.51M	1,076.19B	684,632.04M	770,639.27M
Diluted EPS	2,433	1,708.32	1,444.86	74.54	1,988.57
Dividends Per Share	360	310	300	230	450
Total Assets	7,335.23B	7,387.37B	8,281.39B	7,788.74B	8,038.14B
Total liabilities	1,403.26B	1,144.90B	1,801.24B	1,516.70B	1,562.51B
Total equity	2,997.27B	3,118.83B	3,367.32B	3,249.54B	3,306.53B
Operating cash flow	592,284.56M	731,837.84M	831,147.66M	667,033.61M	763,409.42M

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	5,333.04M	5,523.01M	5,388.73M	4,178.43M	4,650.95M
Gross Profit	3,747.97M	3,863.25M	3,575.98M	2,646.36M	3,089.88M
Operating income	647.04M	499.28M	427.24M	127.69M	311.02M
Income before tax	616.72M	485.13M	369.33M	25.34M	370.17M
Net income	179.22M	129.29M	114.67M	8.79M	157.17M
EBITDA	884.36M	781.48M	922.83M	580.25M	672.95M
Diluted EPS	2.15	1.55	1.23	0.06	1.73
Dividends Per Share	0.31	0.28	0.25	0.19	0.39
Total Assets	6,851.83M	6,620.69M	7,161.04M	7,169.97M	6,761.84M
Total liabilities	1,310.78M	1,026.08M	1,557.56M	1,396.20M	1,314.42M
Total equity	2,799.75M	2,795.15M	2,911.77M	2,991.38M	2,781.52M
Operating cash flow	523.90M	664.99M	712.70M	565.33M	666.64M

Valuation Measures

Dec 2021
PER	22.29
ROA	2.27%
ROE	5.49%
Operating margin	6.68%
Profit margin	3.37%

Key executives

Chairman & Co-Chief Executive Officer: Kyung-Bae Suh
Co-Chief Executive Officer, Director & VP: Seung-Hwan Kim
Head-Compliance Support: Jae-Sung Ahn

Shareholders

SUH KYUNG-BAE (53.7%)
AmorePacific Group, Inc. (6.1%)
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 (1.1%)
The Vanguard Group, Inc. (0.8%)
Amorepacific Foundation (0.5%)

Contact Details

Website:http://www.amorepacific.com
Address: 100 Hangang-daero, Yongsan-gu, Seoul, 04386, South Korea
Phone: +82.2.6040.5114

Related Companies

Pacific Glass Co., Ltd.
Core Technology Corp. (South Korea)
AMOREPACIFIC Hong Kong Co., Ltd.
AMOREPACIFIC Singapore Pte Ltd.
Espoir Corp.
Amorepacific Ventures
Innisfree Corp.
AMOREPACIFIC Taiwan Co., Ltd.
Amorepacific Cosmetics (Shenyang) Co., Ltd.
AMOREPACIFIC Trading Co., Ltd.
Etude Corp.
Astra Co., Ltd.
AMOS Professional Corp.
Pacific Europe SA
Pacific Pharmaceutical Co., Ltd.

Competitors

TONYMOLY Co., Ltd.
Hankook Cosmetics Co., Ltd

Last Updated on 30 Sep, 2022