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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 2019 KRWUSD
Revenue6,284.25B5,388.73M
Gross Profit4,170.25B3,575.98M
Operating income498,249.81M427.24M
Income before tax430,717.08M369.33M
Net income133,732.55M114.67M
EBITDA1,076.19B922.83M
Diluted EPS1,444.861.23
Dividends Per Share3000.25
Total Assets8,281.39B7,161.04M
Total liabilities1,801.24B1,557.56M
Total equity3,367.32B2,911.77M
Operating cash flow831,147.66M712.70M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 5,661.20B 6,697.56B 6,029.06B 6,078.17B 6,284.25B
Gross Profit 4,135.44B 4,919.38B 4,237.12B 4,251.57B 4,170.25B
Operating income 913,640.95M 1,082.81B 731,492.19M 549,473.51M 498,249.81M
Income before tax 921,601.76M 1,088.26B 698,322.47M 534,836.29M 430,717.08M
Net income 260,436.99M 342,394.11M 202,614.25M 142,286.12M 133,732.55M
EBITDA 1,102.54B 1,303.84B 999,788.19M 860,037.51M 1,076.19B
Diluted EPS 3,127 4,241 2,433 1,708.32 1,444.86
Dividends Per Share 390 460 360 310 300
Total Assets 6,147.96B 7,088.39B 7,335.23B 7,387.37B 8,281.39B
Total liabilities 1,260.16B 1,521.51B 1,403.26B 1,144.90B 1,801.24B
Total equity 2,532.71B 2,833.24B 2,997.27B 3,118.83B 3,367.32B
Operating cash flow 737,825.02M 878,070.42M 592,284.56M 731,837.84M 831,147.66M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 5,001.93M 5,772.81M 5,333.04M 5,523.01M 5,388.73M
Gross Profit 3,653.85M 4,240.15M 3,747.97M 3,863.25M 3,575.98M
Operating income 807.24M 933.30M 647.04M 499.28M 427.24M
Income before tax 814.27M 938.01M 617.70M 485.98M 369.33M
Net income 230.10M 295.11M 179.22M 129.29M 114.67M
EBITDA 974.14M 1,123.82M 884.36M 781.48M 922.83M
Diluted EPS 2.76 3.65 2.15 1.55 1.23
Dividends Per Share 0.34 0.39 0.31 0.28 0.25
Total Assets 5,243.24M 5,868.84M 6,851.83M 6,620.69M 7,161.04M
Total liabilities 1,074.72M 1,259.74M 1,310.78M 1,026.08M 1,557.56M
Total equity 2,160.00M 2,345.78M 2,799.75M 2,795.15M 2,911.77M
Operating cash flow 651.90M 756.83M 523.90M 664.99M 712.70M

Valuation Measures

Dec 2019
PER57.23
ROA1.70%
ROE4.12%
Operating margin7.92%
Profit margin2.12%

Key executives

  • Chairman & Co-Chief Executive Officer: Kyung-Bae Suh
  • President, Co-Chief Executive Officer & Director: Dong-Hyun Bae
  • Senior Managing Director & Head-Management: Hyung-Kwon Jung
  • Director & Head-Human Resources: Seung-Hwan Kim
  • Senior Managing Director & Head-Legal Counsel: Jung-Ho Kim

Shareholders

  • SUH KYUNG-BAE (53.8%)
  • AmorePacific Group, Inc. (7.5%)
  • SUH MIN-JUNG (2.9%)
  • Sungwhan Welfare Fund (2.7%)
  • Fidelity Management & Research Co. LLC (2.7%)
  • Invesco Advisers, Inc. (1.9%)
  • Amorepacific Welfare Foundation (1.7%)
  • The Vanguard Group, Inc. (1.0%)
  • BlackRock Fund Advisors (0.9%)
  • Norges Bank Investment Management (0.8%)

Contact Details

Related Companies

  • Amorepacific Ventures
  • Cosvision Corp.
  • AMOREPACIFIC Taiwan Co., Ltd.
  • Amorepacific Japan Co., Ltd.
  • AmorePacific US, Inc.
  • Amorepacific Cosmetics (Shenyang) Co., Ltd.
  • AMOS Professional Corp.
  • Pacific Europe SA
  • Pacific Pharmaceutical Co., Ltd.
  • Pacificglas, Inc.

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 20 Oct, 2020

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