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
Financial Highlights
| Dec 2020 | KRW | USD |
| Revenue | 4,930.08B | 4,178.43M |
| Gross Profit | 3,122.40B | 2,646.36M |
| Operating income | 150,661.04M | 127.69M |
| Income before tax | 29,907.75M | 25.34M |
| Net income | 10,381.31M | 8.79M |
| EBITDA | 684,632.04M | 580.25M |
| Diluted EPS | 74.54 | 0.06 |
| Dividends Per Share | 230 | 0.19 |
| Total Assets | 7,788.74B | 7,169.97M |
| Total liabilities | 1,516.70B | 1,396.20M |
| Total equity | 3,249.54B | 2,991.38M |
| Operating cash flow | 667,033.61M | 565.33M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 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 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 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 | |
| PER | 736.43 |
| ROA | 0.12% |
| ROE | 0.31% |
| Operating margin | 3.05% |
| Profit margin | 0.21% |
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
- Website:http://www.amorepacific.com
- Address: 100 Hangang-daero, Yongsan-gu, Seoul, 04386, South Korea
- Phone: +82.2.6040.5114
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.
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Last Updated on 15 Oct, 2021
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