AmorePacific is forecast to deliver strong Q2 earnings driven by high growth in North America and Europe alongside robust performance from subsidiary COSRX. According to a survey of 11 securities firms by Yonhap Infomax, the company's Q2 revenue is expected to reach 1.0896 trillion won with operating profit of 99 billion won, representing year-on-year increases of 8.42% and 34.35% respectively. The anticipated improvement is notable given Q2 is seasonally a lower-profitability quarter due to employee incentive accruals. Analysts attribute the performance to regional sales momentum and subsidiary contributions that offset challenges in the China market.
AmorePacific Q2 Revenue and Operating Profit Forecast
Yonhap Infomax compiled forecasts from 11 securities firms that issued estimates within the past month. The consensus Q2 revenue projection stands at 1.0896 trillion won, up 8.42% year-on-year, while operating profit is expected at 99 billion won, a 34.35% increase from the prior-year period. Analyst estimates for operating profit range from a low of 91 billion won to a high of 107.3 billion won. SK Securities provided the highest forecast at 100.1 billion won, raising the possibility of Q2 operating profit surpassing the 100 billion won threshold for the quarter.
North America and Europe Drive Regional Sales Growth
North American and European markets are identified as the primary drivers of AmorePacific's Q2 performance. SK Securities analyst Hyung Kwon-hoon estimates North America sales grew 28% while Europe, Middle East, and Africa (EMEA) sales increased 38%. COSRX contributed significantly to growth in both regions, with the subsidiary's revenue rising 29%. Brand-level data shows Illiyoon's "Ceramide Ato Cream" experienced a surge in Amazon US sales traffic starting in March. At Sephora US, traffic increased for Innisfree and Aestura products. DB Securities notes that while Laneige's growth rate has slowed due to intensifying North American market competition, sales diversification across brands including COSRX, Aestura, and Innisfree is offsetting the deceleration.
COSRX Subsidiary Posts 28% Revenue Increase
COSRX, AmorePacific's subsidiary, is estimated to have achieved Q2 revenue growth of 28% year-on-year with an operating profit margin reaching 25%. The subsidiary's performance is cited by multiple analysts as a key contributor to the parent company's North American and European sales expansion. The brand's momentum in overseas markets has helped diversify AmorePacific's revenue base beyond its traditional core brands.
Brand Performance Across Channels
Domestic operations in South Korea are estimated to have maintained growth momentum through strong performance in online and health and beauty (H&B) channels, supplemented by recovering duty-free demand. In contrast, Greater China sales are expected to have declined approximately 20% due to the withdrawal of Sulwhasoo from department store locations. Yugen Securities analyst Lee Hae-ni stated that turnarounds in underperforming countries and brands, along with the materialization of results from incubating brands, are anticipated.
Earnings Announcement Scheduled for 30th
AmorePacific is scheduled to release its Q2 earnings results on the 30th. The announcement will provide confirmed figures against the analyst consensus and detail performance across geographic regions and brand portfolios.
FAQ
What is AmorePacific's Q2 operating profit forecast?
According to a survey of 11 securities firms by Yonhap Infomax, AmorePacific's Q2 operating profit is forecast at 99 billion won, representing a 34.35% year-on-year increase.
Which regions drove AmorePacific's Q2 sales growth?
North America and Europe led the growth, with North American sales estimated to have increased 28% and EMEA sales up 38%. COSRX subsidiary revenue growth of 29% contributed significantly to both regions.
When will AmorePacific announce Q2 earnings?
AmorePacific is scheduled to release its Q2 earnings results on the 30th.
