Prime Highlights :
- South Korea’s top three beauty companies reported strong second-quarter results on higher overseas sales.
- North America and Europe emerged as key growth markets as companies reduced dependence on China.
Key Facts :
- APR, Amorepacific and LG H&H are among South Korea’s largest cosmetics and beauty companies.
- LG H&H’s North American sales surpassed its China sales for the first time since becoming an independent company.
Background :
South Korea’s top three cosmetics companies posted stellar second-quarter performances as they built a strong foothold in North America and Europe, moving beyond their traditional dependence on China. These are Amorepacific, LG Household & Health Care (LG H&H) and APR.
APR posted record quarterly results, with sales rising 134% year-on-year to 767.5 billion won ($538.5 million). Operating profit also increased 134% to 190.6 billion won. Overseas markets generated 700 billion won, accounting for 92% of total sales. Revenue in North America jumped 264.6% to 376.3 billion won, while European sales surged 380.3% to 145.1 billion won.
Amorepacific reported consolidated sales of 1.18 trillion won, up 17% from a year earlier, while operating profit increased 59.3% to 117.3 billion won. The company achieved overall growth despite a decline in Greater China sales, supported by strong demand in the Americas and Europe, the Middle East and Africa, led by skincare brands including COSRX.
LG H&H reached a milestone as its North American sales exceeded those in China for the first time since becoming an independent company. North American revenue rose 47.3% to 205.8 billion won, while China sales declined 5% to 176 billion won. The beauty division returned to profit, supported by strong demand for its premium scalp care brand Dr. Groot.
There are various plans for each firm regarding their growth strategy in the global market. For instance, APR will emphasize fast growth internationally, while Amorepacific will concentrate on regional balance. On the other hand, LG H&H will try to strengthen its business in North America.
