Asia300

AmorePacific Group, Inc.

South Korea

  • 1m
  • 3m
  • 6m
  • 1y
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  • 5y
Feb 23, 2018
Prev close: 131,500
Feb 23, 2018
Market cap:
Market cap(USD):
11,198.9B
10,380.9M
Shares: 88.90M

Currency in KRW

Company profile

Market(Ticker): KRX(002790)
Sector:
Industry:
Consumer Non-Durables
Household/Personal Care
Full time employees: --

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.

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.

In the news

Financial highlights

Dec 2017

  • Local currency
  • US Dollar
Revenue 6,029.06B
Gross profit 4,414.9B
Operating income 731,492M
Income before tax 698,323M
Net income 202,615M
EBITDA --
Diluted EPS --
Dividends per share 460
Total assets 7,331.8B
Total liabilities 1,399.7B
Total equity 2,997.3B
Operating cash flow --

Currency in KRW

Revenue 5,333.04M
Gross profit 3,905.22M
Operating income 647.04M
Income before tax 617.70M
Net income 179.22M
EBITDA --
Diluted EPS --
Dividends per share 0.40
Total assets 6,848.62M
Total liabilities 1,307.45M
Total equity 2,799.77M
Operating cash flow --

Currency in USD

Valuation measures

Dec 2017

PER 61.86
ROA 2.81%
ROE 6.95%
Operating margin 12.13%
Profit margin 3.36%

Key executive

  • Chairman & Co-Chief Executive Officer: Kyung-Bae Suh
  • President, Co-Chief Executive Officer & Director: Dong-Hyun Bae
  • MD, Compliance Officer & Head-Legal Division: Hee-Chul Shin
  • Senior Managing Director & Head-Human Resources: Seung-Hwan Kim
  • Senior Managing Director & Head-Management: Hyung-Kwon Jung

Share holders

  • SUH KYUNG-BAE(53.8%)
  • AmorePacific Group, Inc.(6.7%)
  • National Pension Service of Korea(5.0%)
  • SUH MIN-JUNG(2.9%)
  • Sungwhan Welfare Fund(2.7%)
  • Amorepacific Welfare Foundation(1.7%)
  • Aberdeen Asset Managers Ltd.(1.2%)
  • First State Investment Management (UK) Ltd.(1.2%)
  • Fidelity Management & Research Co.(0.9%)
  • The Vanguard Group, Inc.(0.8%)

Address

  • Website: http://www.amorepacific.com
  • Address: 100 Cheonggyecheon-ro, Jung-gu, Seoul, 04542, South Korea
  • Phone: +82.2.709.5114

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