Amore’s deficit crisis widened, operating profit fell 36%

On November 5th, Amore Pacific released its third quarter results report. In the third quarter, the group’s sales increased by 3.1% year-on-year to 1,462.6 billion won (approximately RMB 8.933 billion); operating profit fell 36%, only 847 100 million won (about 517 million yuan).

In the first three quarters, the cumulative decline in sales of Amore Pacific narrowed to 0.1% to 468.05 billion won (approximately RMB 28.585 billion); however, operating profit fell sharply, falling to 16.9%, only achieving 533.1 billion won. RMB 3.256 billion); operating profit margin fell year-on-year, from 13.7% in the same period in 2017 to 11.4% today.

In addition, Amore Pacific plans to accelerate its expansion in overseas markets. On the one hand, Lange and Iti House will enter the Indian market during the year, and Yue Shi will enter the Philippines; on the other hand, in the Chinese market, Yue Shi will be popular with Sansi Line cities expand to open new stores.