Amorepacific Group's 2020 annual net profit plummets 90 percent

Amorepacific Group's annual net profit nosedived more than 90 percent last year compared to the previous year, as offline sales suffered from social distancing and travel restrictions due to Covid-19.

Amorepacific Group’s annual net profit nosedived more than 90 percent last year compared to the previous year, as offline sales suffered from social distancing and travel restrictions due to Covid-19.

The cosmetics company’s annual net profit last year stood at 22.05 billion won ($19.78 million), down 92.2 percent from the previous year, according to a preliminary report released on Wednesday. The company, best known for its Sulwhasoo cosmetics brand, saw a net loss in the fourth quarter of 84.9 billion won, down 25.5 percent from a net loss of 67.7 billion won during the same period a year earlier.

Its annual revenue last year declined 21.5 percent on year to 4.93 trillion won. Its revenue in the fourth quarter declined 16 percent from a year earlier to 1.26 trillion won.

“Offline channels suffered in particular from plummeting global tourists and social distancing inside and outside of Korea,” said Amorepacific Group in a statement. The company added it focused on online channels and sought growth through the introduction of new premium brands, like Sienu and Labo-H.

The company’s goal for this year is to raise 5.6 trillion won in revenue. It will attempt to raise more than 30 percent of the revenue from sales on e-commerce platforms.

Of Amorepacific Group’s major brands, decline in revenue was most evident in Etude. Its on-year revenue declined 38 percent, followed by Innisfree at 37 percent.

BY JIN MIN-JI [jin.minji@joongang.co.kr]