Amorepacific Group recorded KRW 1.2793 trillion (-22%) in sales and KRW 67.9 billion (-67%) in operating profit in Q1 2020. In the face of COVID-19, Amorepacific Group discovered the potential of the digital channel and built a springboard for their next leap through digital transformation and the development of personalized cosmetic technology.

 Despite operating profit dropping due to decreased sales in major offline channels including TR and department store channels, Amorepacific Group has continued to release new products to enhance brand competitiveness. With Tailored 3D Mask technology, Amorepacific Group received the CES 2020 Innovation Award and further ramped up its effort to take the lead in the coming age of personalized beauty and create a new customer experience, which in turn will provide special value to customers. 

 With the launch of SIENU, its first brand in collaboration with a leading duty free operator, Amorepacific Group strengthened its luxury brand portfolio. It also introduced new brands including HOLITUAL, FILLVOID and LABO-H in response to specific customer needs.

Both sales and operating profit of eSpoir increased with its expansion into multi-brand shop channel and higher sales of face makeup products.

 In global business, both sales and operating profit decreased as COVID-19 weighed heavily on the market. Amorepacific Group, However, newly released Sulwhasoo Bloomstay Vitalizing Eye Cream in China and Sulwhasoo Timetreasure Honorstige in Thailand to secure its competitive position in the anti-aging category. Online sales increased through a variety of brand activities via Chinese Tmall. innisfree successfully made its debut in the Middle Eastern market and expanded its customer touchpoints with the opening of its first shop in the UAE. In the North American market, LANEIGE and innisfree put up a good show, particularly in multi-brand shop and online channels. The release of exclusive products including LANEIGE Lip Sleeping Mask X Netflix helped contribute to sales growth in North America.

 Despite the impact of the COVID-19 crisis, Amorepacific Group has managed to secure a competitive advantage in the digital channel and lay the groundwork for future growth. Furthermore, the group plans to diversify its channel portfolio in the global market, develop personalized beauty solution and technology and drive digital transformation for even better performance in 2020. 

 Details of our performance disclosure are available on Amorepacific corporate website (https://www.apgroup.com/int/en/).