South Korea’s biggest beauty company is making more money than it has in years, and less of it now depends on China.

Amorepacific Group has reported third-quarter revenue of KRW 1.21 trillion, up 8.9 per cent on a year earlier. The group has now grown revenue for nine quarters in a row. Operating profit rose 24.7 per cent to KRW 130.1 billion. 

The group credited a more profitable Korean business, strong growth in North America from its Aestura and Innisfree brands, and wider distribution in Japan and India. It is also betting on derma skincare, meaning products for sensitive or problem skin, and hair care as its next sources of growth.

The biggest surprise came from Korea, a market usually seen as mature.

At the group’s main subsidiary, Amorepacific Corporation, domestic revenue grew 11.5 per cent to KRW 620.5 billion, while operating profit jumped 42.4 per cent to KRW 84.6 billion. The resulting 13.6 per cent margin was the highest for a third quarter since 2015. 

One of the main drivers was tourism. Korea recorded more than 18.94 million foreign arrivals by late October, an all-time high. Amorepacific’s travel retail and cross-border sales grew 17 per cent and now make up a quarter of its Korean revenue, up from 23 per cent a year earlier. Duty-free and other travel retail alone accounts for 18 per cent of the domestic business.

Meanwhile, the business benefited from the rise of CJ Olive Young, which has become a must-visit stop for tourists in South Korea.

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