[Consumerwide_ Yohan, Bok Reporter] The Amorepacific group has turned to surplus in just 1 quarter period. But, the sales records and the profit records have decreased compared to the same quarter last year. The Chinese blockage might have influenced the recovery of the record, considering the former system being dependent on China. Moreover, high currency rates probably have held duty-free records. However, diversification of the portfolio, including rapid sales growth in the North American market and entering the Japanese market on full scale, seemed to slow down performance and decrease the range.

For this reason, the future of Amorepacific seems bright. I suspect that if the North American market sales continue in good conditions while the Chinese market recovers, this might work as a positive upturn.

On the 31st, followed by the official record for 3rd quarter, Amorepacific 3rd quarter sales (1.218 trillion won) and profit(33 billion won) have decreased by -15.9% and -36.2% compared to the same quarter last year. Considering that last quarter turned to a deficit, they've succeeded in a surplus in just 1 quarter period. However, the cosmetics sector, which is the most dependent on China, is not overcoming a record slump. During the 3rd quarter, the whole group recorded 949.9 billion won for sales in the cosmetics sector.

Classifying records referring to the affiliates and subsidiary companies, Amorepacific sales and profit have recorded each 936.4 billion won, 18.8 billion won, which records are decreased by 15.6% and 62.6% comparing same quarter last year.

Domestic business sales have recorded 587.1 billion won, which is decreased by 18.6% compared with the same month last year. The profit record has decreased by 49.8% (29.4 billion won). These records reflect the duty free channel slump being directly hit by high currency rates and the Chinese blockage.

Regarding the overseas business, the Asia region sales record has dropped with slow consumption having been influenced by the Chinese blockage. Overseas business sales have recorded 334.8 billion won (-12.8%). The profit has turned to surplus.

The main subsidiary companies' records have improved. Innisfree and Etude have succeeded in turning to surplus.

During the 3rd quarter, Innisfree recorded 74.8 billion won for sales(a 3.7% increase from the same quarter last year), and 8.3 billion won for profit.

The sales record of Etude has decreased by 3.6% (25billion won) compared with the same quarter last year, but profit has been recorded at 1.5 billion won.

Espoir has recorded 1.1 billion won in profit, which has increased 1348.4% compared to the same quarter last year. The sales record has increased by 6.2% (12 billion won). Amos professional continued to skyrocket. The sales increased by 14.4% (16.4 billion won), and the profit by 21.6%(3.6 billion won) compared with the same quarter last year. Osulloc has reached 19.8 billion won on sales record, which has increased 30.6% compared with the same quarter last year. The profit has increased by 173.3% (2 billion won).

The Amorepacific group has discovered a positive signal through the record this season. In the new market, including the American market, they've found a potential for recovery over the sales growth on full scale. In the North American market they've achieved double the sales record compared to last year. The Asean and European markets had significant growth as well. North American overall sales have grown up to 97% as the main brand in the North American market was securing competitiveness. European sales grew by 60%.

Targetting the Japanese beauty market has begun along with the new release, Neo cusion, Laneige in Japan. However, it probably will take a while to recover the former record of the Amorepacific group. The scale of the North American market won't help to replace the loss of the Chinese market. Only if the Chinese market turns to recover while the North American·European·Japanese market continues to grow, might it open up a new era for Amorepacific.

An Amorepacific related person said during the Consumerwide interview, "In terms of future-oriented perspective, it's an encouraging record. We've grown almost twice in the North American market. But, it's hard to say big considering the overall scale. We have just begun targeting the Japanese market. Hence, we are expecting to see the effect whether next year or later. If this flow continues and the Chinese market recovers, it might cause a positive upturn."