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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. 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 KRWUSD
Revenue5,326.08B4,650.95M
Gross Profit3,538.41B3,089.88M
Operating income356,171.27M311.02M
Income before tax423,914.06M370.17M
Net income179,995.03M157.17M
EBITDA770,639.27M672.95M
Diluted EPS1,988.571.73
Dividends Per Share4500.39
Total Assets8,038.14B6,761.84M
Total liabilities1,562.51B1,314.42M
Total equity3,306.53B2,781.52M
Operating cash flow763,409.42M666.64M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 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 2017Dec 2018Dec 2019Dec 2020Dec 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
PER22.29
ROA2.27%
ROE5.49%
Operating margin6.68%
Profit margin3.37%

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

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

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