PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,240 per share · Prices as of the 2026-10-02 close
Margins have entered double-digit territory on domestic channel profitability and fast-growing derma brands in the Americas, Europe and Japan, while US tariffs, a shrinking Greater China base and intense indie-brand competition remain in play.
Operating margin of 11.2% in Q1 2026 and 10.0% in Q2 2026 stands well above the 7.9% full-year 2025 level, marking a step-up in profitability.
Per company disclosure, Q2 2026 overseas revenue rose 28% and overseas operating profit 99%, while the domestic business grew 10% in revenue and 48% in operating profit.
Derma brands such as COSRX and AESTURA have emerged as growth engines, reducing reliance on Laneige alone.
A one-off voluntary-retirement charge depressed Q4 2025 operating profit to KRW 52.5bn, and the company says the resulting cost savings have not yet been fully reflected.
A 15% US tariff applies to Korean cosmetics, making the cost and pricing structure behind Western-market growth a key item to monitor.
Amorepacific runs Korea's largest beauty brand portfolio, spanning cosmetics, hair and body care household products, and health functional foods.
Per company IR materials, the COSMETICS business includes Sulwhasoo, Hera, IOPE, Primera, Laneige, AESTURA, illiyoon, Mamonde, Hanyul, BE READY, Vital Beautie and COSRX, while the HAIR & BEAUTY business covers Ryo, Mise en Scene, LABO-H, Happy Bath and Longtake.
Channels split into online, multi-brand shops (MBS), department stores, duty free and cross-border sales to overseas consumers; the company said online and MBS both grew double digits in Q2 2026, with department stores also gaining on inbound tourist traffic.
Geographically the business is divided into Korea, the Americas, EMEA, Japan, other Asia and Greater China, and IBK Investment & Securities stated in a September 2026 report that Greater China had shrunk to 10.6% of overseas revenue.
China exposure, historically the main source of earnings volatility, has thus receded while the Americas, EMEA and Japan have taken over as growth drivers. By brand, the company says Sulwhasoo leads domestic luxury skincare, Hera luxury makeup, AESTURA the derma category, and illiyoon the body category at Olive Young.
Competition is layered: legacy majors such as LG Household & Health Care at home, plus indie brands and newly listed challengers that scaled fast through online and Amazon channels.
Affiliated beauty brand units Innisfree, Etude, espoir and Amos Professional are absorbing the impact of offline channel restructuring, so trends at the parent and at subsidiaries have diverged.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩1T | ₩73.7B | 7.3% |
| 2025Q3 | ₩1T | ₩91.9B | 9.0% |
| 2025Q4 | ₩1.2T | ₩52.5B | 4.5% |
| 2026Q1 | ₩1.1T | ₩126.7B | 11.2% |
| 2026Q2 | ₩1.2T | ₩117.3B | 10.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩4.1T | ₩214.2B | ₩134.5B | 5.2% | 2.8% | 21.4% |
| 2023 | ₩3.7T | ₩108.2B | ₩180.1B | 2.9% | 3.7% | 20.8% |
| 2024 | ₩3.9T | ₩220.5B | ₩593.2B | 5.7% | 11.3% | 27.4% |
| 2025 | ₩4.3T | ₩335.8B | ₩235.7B | 7.9% | 4.3% | 26.5% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annually, revenue fell from KRW 4,134.9bn in 2022 to KRW 3,674.0bn in 2023, then recovered to KRW 3,885.1bn in 2024 and KRW 4,252.8bn in 2025, surpassing the 2022 level.
Operating profit expanded for two straight years, from KRW 108.2bn (2.9% margin) in 2023 to KRW 220.5bn (5.7%) in 2024 and KRW 335.8bn (7.9%) in 2025, a clear earnings-recovery direction.
Owner-attributable net profit of KRW 593.2bn in 2024 far exceeded that year's operating profit, indicating large non-operating contributions, and normalised to KRW 235.7bn in 2025.
Quarterly, revenue and operating profit went from KRW 1,005.0bn / KRW 73.7bn (7.3%) in Q2 2025 and KRW 1,016.9bn / KRW 91.9bn (9.0%) in Q3 2025 to KRW 1,163.4bn / KRW 52.5bn (4.5%) in Q4 2025, a sharp margin drop caused by a KRW 53.6bn one-off voluntary-retirement charge (Newspim, July 2026).
In 2026, Q1 posted revenue of KRW 1,135.8bn and operating profit of KRW 126.7bn (11.2%), followed by KRW 1,175.9bn and KRW 117.3bn (10.0%) in Q2, two consecutive quarters of double-digit operating margin. Owner-attributable net profit was KRW 88.3bn in Q2 2026 and KRW 108.5bn in Q1, both sharply improved year on year.
The company reported that Q2 2026 domestic revenue was KRW 610.8bn with operating profit of KRW 59.6bn, up 10% and 48% respectively at around a 10% domestic margin, while overseas revenue rose 28% and overseas operating profit 99%.
KB Securities said in a July 2026 report that Western-market revenue grew 58% year on year in Q2, driving the result.
On the balance sheet, equity stood at KRW 5,503.5bn against liabilities of KRW 1,457.8bn at end-2025 for a debt-to-equity ratio of 26.5%, while operating cash flow rose from KRW 334.5bn in 2024 to KRW 583.8bn in 2025.
Korea's cosmetics industry is in an export-led expansion. On the food-and-drug regulator's provisional tally, first-half 2026 cosmetics exports reached USD 7.0bn, up 27.3% year on year for a record half, with the US at USD 1.45bn, up 41.5% and 20.7% of the total.
Exports to China, by contrast, kept declining, reflecting a structural shift in the industry's growth axis from China toward Western and emerging markets. Amorepacific's own mix moves in the same direction, with Greater China revenue shrinking on offline channel rationalisation while the Americas, EMEA and Japan grow.
That said, Korean-made cosmetics face a 15% US reciprocal tariff, and commentators note the duty lands on landed cost before retail margin and retailer marketing contributions are even deducted.
On channels, offline placement at Sephora and Ulta now competes alongside online platforms such as Amazon and TikTok Shop, and Amorepacific cited results at platform events including Amazon Prime Day and Qoo10 Japan Mega-wari as evidence of momentum.
Competitively, its strengths are portfolio breadth and offline bargaining power as a large brand house, though speed of trend response versus indie brands that penetrate rapidly with a single hero product remains a standing item to watch.
Industry growth also appears concentrated in a handful of brands, widening the gap between winners and laggards.
Under its mid-to-long-term vision "Create New Beauty," the company says it is pursuing five strategic tasks: cultivating core global markets, strengthening integrated beauty solutions, bio-based anti-ageing R&D, organisational innovation and AI-based work transformation.
Derma expansion is presented as the concrete growth path: the company said AESTURA delivered triple-digit revenue growth in North America in Q1 2026 and newly entered 17 European countries, while IOPE formally launched at Sephora in North America.
On COSRX, KB Securities said in an April 2026 report that Q1 revenue rose 24.0% year on year and that the RX line reached the mid-30% range of brand sales, overtaking the legacy snail line.
On channel strategy, KB Securities noted in a July 2026 report that marketing focus is shifting from a Sephora-centric approach toward high-growth online channels such as Amazon and TikTok.
On costs, the company says the effect of the Q4 2025 voluntary retirement programme has yet to show in results, so the timing at which lower personnel costs reach the margin line is the next checkpoint.
Working the other way, affiliated brand units including Innisfree and Etude saw Q2 2026 revenue and operating profit fall 13% and 51% on distribution rationalisation, so opposing forces coexist within group consolidated numbers.
Greater China continues to prioritise profitability while revenue declines, making the margin impact of the regional mix shift another item to track.
The earnings multiple is computed on the latest four quarters (Q3 2025 through Q2 2026), a window that contains the Q4 2025 one-off charge, which can make the multiple look higher than underlying earnings power.
Conversely, using a year such as 2024, when large non-operating gains were booked, produces a much lower multiple, so the base year chosen materially changes the figure.
Against net assets the stock trades at a premium, and it is worth noting that the price-to-book reading differs depending on whether the in-house or Korea Exchange method of computing book value per share is used.
The dividend yield sits low relative to the domestic market average, so the pace of earnings recovery rather than income is the centre of the valuation debate.
Broker views diverge: IBK Investment & Securities initiated coverage on 1 September 2026 with a target price of KRW 200,000, KB Securities raised its target to KRW 190,000 in a July 2026 report, and NH Investment & Securities cut its target from KRW 180,000 to KRW 160,000 in a June 2026 report. These are the brokers' stated views, not KOSAI's.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Operating margins of 11.2% in Q1 2026 and 10.0% in Q2 compare with 7.9% for full-year 2025 and 2.9% in 2023. The company said its domestic business posted roughly a 10% operating margin and that overseas operations delivered double-digit margins in both Q1 and Q2. Revenue growth and margin improvement arriving together supports the quality of the earnings recovery.
KB Securities said in a July 2026 report that alongside Laneige and COSRX, AESTURA sustained triple-digit growth while illiyoon and Innisfree also grew strongly. The company cited AESTURA's entry into 17 new European countries and IOPE's launch at Sephora in North America. Lower reliance on a single brand spreads exposure to individual brand cycles.
IBK Investment & Securities said in a September 2026 report that Greater China had shrunk to 10.6% of overseas revenue and that, with restructuring complete, downside to earnings is limited.
The Q4 2025 voluntary-retirement charge has already been booked, and the company said the resulting savings were not yet reflected in Q2 2026 results. Leverage is low, with a 26.5% debt-to-equity ratio at end-2025, and operating cash flow expanded to KRW 583.8bn in 2025 from the prior year.
A 15% US reciprocal tariff applies to Korean-made cosmetics, and commentators note the duty hits landed cost before retail margin and retailer marketing contributions. The larger the Western revenue share becomes, the larger the absolute tariff burden.
Until price pass-through and local production or distribution strategies prove out, this remains a swing factor for margins.
The company said Greater China revenue declined in both Q1 and Q2 2026 on channel rationalisation. Affiliated beauty brand units Innisfree, Etude, espoir and Amos Professional saw Q2 2026 revenue and operating profit fall 13% and 51% respectively.
Because part of the Western-market gain is offset by these declines, consolidated growth prints below headline regional and brand growth rates.
Much of the growth evidence the company presents rests on major promotional events such as Amazon Prime Day and Qoo10 Japan Mega-wari. Promotion-concentrated sales can amplify quarterly volatility and marketing expense.
At the same time, a growing number of indie brands penetrate Amazon and TikTok Shop rapidly with a single hero product, keeping in-channel competition intense.
US tariffs rest on executive action and can change with the policy environment, limiting predictability. Changes to the de minimis exemption directly affect the cost structure of cross-border and direct-shipping models.
Since the company presents cross-border as a growth channel, related rule changes can hit both revenue and margin.
Quarterly operating profit in 2025 swung between KRW 73.7bn (Q2), KRW 91.9bn (Q3) and KRW 52.5bn (Q4), the last including a one-off charge. Non-operating items have also moved net profit sharply, as in 2024's KRW 593.2bn owner-attributable figure, making year-on-year comparison less than straightforward.
Promotion timing and order-placement shifts at large retailers such as Sephora can further widen quarterly swings.
Cosmetics demand is sensitive to shifts in ingredient and formulation trends, and growth appears concentrated in a handful of brands. At COSRX, the RX line displacing the legacy snail line shows how the pace of line turnover drives results. Stepped-up marketing to seed new brands can also front-load expense ahead of the revenue it generates.
Q3 2026 results. Watch whether the double-digit operating margin achieved in Q1 and Q2 holds, and whether personnel-cost savings from the Q4 2025 voluntary retirement programme begin to appear in the P&L.
China's Singles' Day plus Black Friday, Cyber Monday and Amazon year-end events. The question is whether Western-market growth at these large platform promotions, which the company has cited as evidence of momentum, holds near the Q2 pace.
Q4 and full-year 2026 results plus the dividend resolution. This is when the Q4 margin without the one-off charge seen in Q4 2025, and the full-year operating margin, become visible.
Policy changes on US tariffs and the de minimis exemption, and the company's response through expanded local distribution and pricing. With the Western revenue share now larger, the margin impact of how costs are passed through needs checking.
Disclosures on channel expansion for newly launched Western-market brands such as AESTURA and IOPE, plus performance of new COSRX lines. Whether a second and third global growth brand takes hold beyond Laneige underpins the durability of growth.
Amorepacific's profitability has recovered from a 2.9% operating margin trough in 2023 to 7.9% in 2025 and 11.2% and 10.0% in Q1 and Q2 2026 respectively.
The recovery is built on improved profitability in domestic online and multi-brand shop channels plus derma brand expansion across the Americas, EMEA and Japan, with the company reporting 28% overseas revenue growth and 99% overseas operating profit growth in Q2 2026.
At the same time, declining Greater China revenue, channel-restructuring drag at affiliated beauty brand units and the 15% US tariff on Korean-made cosmetics all remain live variables.
Because the Q4 2025 one-off charge sits inside the latest four quarters of earnings, interpreting the earnings multiple requires care about the base period, and the stock trades at a premium to net assets.
Broker targets span from KRW 200,000 (IBK Investment & Securities, September 2026) to KRW 160,000 (NH Investment & Securities, June 2026), and the width of that gap itself characterises the current phase.
Ultimately two things need verifying: whether Western-market growth holds after absorbing tariff costs, and whether restructuring savings actually show up in margins. This report is for information purposes and contains no buy or sell opinion and no target price.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.