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. 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	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

KRW | USD

	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 (2.6%)
Amorepacific Welfare Foundation (1.7%)
BlackRock Fund Advisors (1.1%)
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

Pacific Glass Co., Ltd.
Core Technology Corp. (South Korea)
AMOREPACIFIC Hong Kong Co., Ltd.
AMOREPACIFIC Singapore Pte Ltd.
Espoir Corp.
Amorepacific Ventures
Pacific Package Co., Ltd.
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

Estee Lauder Companies Inc. Class A
KT & G Corporation
Hankook Cosmetics Co., Ltd
Greencross WellBeing Corporation
Leaders Cosmetics Co., Ltd

Last Updated on 3 Dec, 2021