Amore Pacific posted record earnings again as sales of its beauty products keep surging in China.
Korea’s biggest cosmetic maker on Monday said first-quarter revenues soared 22 percent compared to the same period last year to W1.76 trillion, while operating profit soared 31 percent to W419 billion (US$1=W1,141).
Sales in Asia grew 50 percent to play a key role in the stellar earnings performance. The operating margin reached 23.8 percent, which is even higher than Apple’s celebrated 23 percent and Google’s 21 percent last year.
Amore Pacific’s full-year operating margin is forecast at 18 to 20 percent given the cosmetics industry’s tendency to post higher operating profits in the first quarter due to lower marketing costs. But that is still an enviable edge for a manufacturer.
A company spokesman said brand awareness in China is rising,