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2Q 2025 Earnings Release 2025.8.1
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CONTENTS DISCLAIMER The financial information included in this document is interim consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors as a reference; it contains financial information and data that have not yet been audited from the external auditor,and may cause some parts of this document to change during the final audit. The company hereby expressly disclaims any and all liabilities resulting from investors’ reliance on the information contained herein. 1 2Q 2025 Earnings Summary 2 Domestic Business 3 Financial Summary Overseas Business 4
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Amorepacific revenue up 11.1% to 1.0 trillion KRW Domestic revenue up 8%. Overseas revenue up 14% with continued strong performance of major brands 2024 2Q % of Revenue 2025 2Q % of Revenue YoY(%) Revenue1) 904.8 100.0 1,005.0 100.0 +11.1 Domestic Business 511.9 56.6 553.6 55.1 +8.2 Luxury2) 281.1 31.1 329.6 32.8 +17.3 Premium2) 121.7 13.5 101.1 10.1 -16.9 Daily Beauty 88.5 9.8 99.4 9.9 +12.3 Others3) 20.6 2.3 23.5 2.3 +14.1 Overseas Business 381.5 42.2 436.4 43.4 +14.4 Western Region 159.1 17.6 178.5 17.8 +12.2 Other Asia 114.6 12.7 125.3 12.5 +9.3 Greater China 107.7 11.9 132.7 13.2 +23.2 2Q 2025 Revenue (Unit: bn KRW) 1) Total revenue includes earnings from COSRX, other subsidiaries (Cosvision, Wedreametc.), and intercompany transactions. 2) Excluding brand reclassification impact (IOPE, Holitualtransferred to Luxury business), like-for-like growth is 2% decline YoY for luxury business and 11% increase YoY for premium business. 3) Other cosmetic brands, OEM etc. 2
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2Q 2025 Operating Profit Amorepacificoperating profit up 1673.4% to 73.7 billion KRW • Western region (Americas, EMEA) operating profit declined due to increased personnel costs from employee incentives paid out at the end of internal business year (July 2024 – June 2025) • Asian region achieved overall improvement in operating profit, driven by business restructuring efforts in Greater China * Total operating profit includes earnings from other subsidiaries (Cosvision, Wedreametc.), and intercompany transactions Overseas Business Domestic Business Domestic operating profit up 164% driven by improvements across both Cosmetics and Daily Beauty businesses Overseas operating profit up 611% led by enhanced profitability in Asia due to turn around in Greater China Unit: bn KRW (% OPM) • Cosmetics business operating profit increased, driven by rising traveler demand and growth in travel retail sales, as well as continued strong performance in key channels (online and multi- brand shop) leading to expanded sales of major brands (Travel retail channel accounts for 18% of total domestic revenue) 3 • Daily Beauty business turned to profit through sales growth of key channels (online, multi-brand shop) and improved product mix with increased share of premium products 15.2 40.2 5.1 36.0 (3.0%) (8.3%) (7.3%) (1.3%) +1673% +164% +611% 2024 2Q 2025 2Q 4.2* (0.5%) Domestic Business Overseas Business 73.7* (7.3%)
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2Q 2025 Income Statement Gross profit margin up 2.1%p from stricter promotion control and enhanced brand mix. Marketing expenses down 11% through company-wide cost optimization Personnel expenses up 10% due to performance-based incentive payouts at the end of business year . Commission up13% with increased domestic travel retail sales 2024 2Q % of Revenue 2025 2Q % of Revenue YoY(%) Revenue 904.8 100.0 1,005.0 100.0 +11.1 Cost of Sales 266.7 29.5 275.1 27.4 +3.2 Gross Profit 638.1 70.5 729.9 72.6 +14.4 SG&A Expenses 633.9 70.1 656.2 65.3 +3.5 Personnel Expense 1) 149.7 16.5 164.2 16.3 +9.7 Marketing Expense 2) 158.1 17.5 140.9 14.0 -10.9 Commission 3) 169.2 18.7 191.4 19.0 +13.1 Depreciation Cost 4) 47.2 5.2 51.6 5.1 +9.3 Operating Profit 4.2 0.5 73.7 7.3 +1673.4 Net Income 530.6 58.6 37.6 3.7 -92.9 1) Personnel Expense: Salaries, Retirement Benefits, Employee Benefits 2) Marketing Expense: Advertisement and Promotional Expense 3) Commission: Service Fees and Distribution Commission 4) Depreciation Cost: Depreciation and Amortization (Unit: bn KRW) 4
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2024 2Q 2025 2Q 281.1 329.6 • Luxury accounts for 60% of total domestic revenue -Sulwhasoo29% ( v s. 2 4 .2 Q 2 8 % ) -Hera 16%( v s. 2 4 .2 Q 1 8 % ) LUXURY +17% 2Q 2025 Domestic Business *Excluding the brand reclassification impact (IOPE, Holitualtransferred to Luxury business), like-for-like growth for luxury business is 4% increase YoY ( U n i t : b n K R W ) 5 • Overall luxury cosmetics revenue increased driven by key brands (Sulwhasoo, Iope, Primera) and the reclassification* of domestic cosmetic brands • Strengthened marketing campaigns of key products by brand, driving solid sales growth - [Sulwhasoo] Achieved sales growth through extensive marketing efforts for ‘First Care Activating Serum’, including opening a pop-up store, launching large-size limited edition and hosting a global culture trip - [Iope] Strengthened marketing message of ‘Prescription Retinol RX ’ as a customized skincare solution, resulting in expanded sales driven by retinol products - [Primera] Posted strong growth in multi-brand shop channel by emphasizing lifting effects of ‘Vitatinol’ line • Sharpened market responsiveness by strengthening customer engagement and channel expansion - [Sulwhasoo] Enhanced product competitiveness with luxury gift sets(‘First care activating serum’, ‘Concentrated ginseng cream rich’) and ‘Jihambo’ service, responding to gifting season (May) and expanding customer base - [Hera] Reinforced expertise as a luxury makeup brand by expanding the number of shades provided by the Custom Match Service (total 330 shades of ‘Black Cushion’ and ‘Silky Stay’) - [AP Beauty] Achieved strong sales during its first participation in ‘Amore Sale Festa’ (Amore Mall online promotion) Iope ‘Retinol Super Bounce Serum’ (‘Retinol RX ’)Primera ‘VitatinolSerum’ Hera ‘Custom Match’ ServiceSulwhasooGlobal Culture Trip ‘Holistic Beauty Journey’
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• Despite decline in overall premium cosmetics revenue due to reclassification* of domestic cosmetic brands, all major brands (Laneige/Aestura/Hanyul/Mamonde) achieved sales growth through growth channels such as multi-brand shop and online channel • Strengthened brand positioning within the multi-brand shop channel through strong performance of key products - [Mamonde] Reinforced brand awareness as the go-to skincare brand for base makeup via ‘#1 Make Up Boost Campaign,’ with its hero product ‘Flora Glow Rose Liquid Mask’ achieving highest-ever sales in Olive Young - [Hanyul] Strenghtenedbrand leadership in Olive Young’s cleansing category, driven by strong viral marketing of ‘Pure Artemisia Deep Clarifying Mask to Foam Cleanser’ - [B.Ready] Launched ‘Prep by B.Ready’ exclusively at Daiso and expanded male customer base • Fortified global competitiveness by strengthening global marketing and expert networks - [Laneige] Introduced new global products (‘Neo Cushion Mewy,’ ‘Gel Cream Skin,’ ‘Glaze Craze Tinted Lip Serum’) and created strong buzz with ‘Neo Cushion Mewy’ campaign featuring BTS’s Jin, first unveiled in Korea - [Aestura] Reinforced expertise as Korea’s leading derma brand by launching the 1st ‘Global A-Master’ Program, nurturing global digital creators among international university students residing in Korea, and hosting the ‘Sensitive Skin Cosmetics Research Association’ in collaboration with dermatologist professionals 2024 2Q 2025 2Q 121.7 101.1 • Premium accounts for 18% of total domestic revenue -Aestura7% ( v s. 2 4 .2 Q 5 % ) -Laneige6% ( v s. 2 4 .2 Q 6 % ) PREMIUM -17% Laneige‘Neo Cushion Mewy’ Global Campaign with BTS ‘Jin’ Hanyul ‘Pure Artemisia Deep Clarifying Mask to Foam Cleanser’ Second Brand by B.Ready ‘Prep by B.Ready’ ‘#1 Make Up Boost Campaign’ by Mamonde 2Q 2025 Domestic Business *Excluding the brand reclassification impact (IOPE, Holitualtransferred to Luxury business), like-for-like growth for premium business is13% increase YoY 6 ( U n i t : b n K R W )
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DAILY BEAUTY 2Q 2025 Domestic Business 7 Longtake ‘Intensive Hair Oil’ HappyBath‘CicaCalming Sun Care’ LineIlliyoon x Hello Kitty Limited Edition Mise-En-Scè ne‘Salon 10 Silky Protein’ Line • Overall sales increased driven by strong performance of functional products of major brands, and improved channel mix with continuous growth in e-commerce and multi-brand shop channels • Delivered sales growth by launching seasonal products and reinforcing functional product line-up - [Mise-en-Scè ne] Achieved solid sales growth from the newly launched ‘Salon 10 Silky Protein’ line, specialized for damaged hair -[Illiyoon] Posted sales growth by addressing summer season with the launch of ‘Mineral Skin Barrier Sunscreen’ and creating buzz with ‘Hello Kitty’ limited edition, which ranked #1 in Olive Young with strong sales -[HappyBath] Launched ‘Feel so Good CicaCalming’ suncare product line, responding to consumer needs for skin relief during summer season • Strengthened brand awareness and growth momentum by diversifying global customer base -Maintained strong growth momentum in cross-border e-commerce channel by enhancing market responsiveness in North America and entering new channels (Illiyoonin TikTok Shop, Ryo in Costco, and Labo-H in Amazon) -[Longtake] Boosted brand awareness and sales among Chinese customers through integrated marketing efforts across local social media (Xiaohongshu) and offline retail experiences at Olive Young stores in tourist areas 88.5 99.4+12% 2024 2Q 2025 2Q • Daily Beauty accounts for 18% of total domestic revenue -Mise-en-Scè ne6% ( v s. 2 4 .2 Q 6 % ) -Illiyoon3% ( v s. 2 4 .2 Q 3 % ) -Ryo 2%( v s. 2 4 .2 Q 3 % ) (Unit: bn KRW)
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WESTERN REGION 2Q 2025 Overseas Business 8 • Americas revenue grew 10% driven by new brand launch and strong performance of key products - [Laneige] Achieved robust sales growth in both lip and skincare category through solid sales of ‘Glaze Craze Lip Serum,’ new launch of ‘Bubble Tea Collection(Lip Sleeping Mask, Lip GlowyBalm),’ and continued demand for ‘Bouncy and Firm Serum’ - [Innisfree] Posted strong sales from ‘Vita C’ line by enhancing customer engagement via omni-channel marketing - [Aestura] Continued strong sales momentum for its ‘Atobarrier’ line, ranking No.1 in sales (April) among newly introduced brands at Sephora - [Hanyul] Newly entered the U.S. market via Sephora and built awareness with its ‘Yuja Brightening’ line products - [COSRX] Expanded product portfolio in emerging categories by launching new suncare and haircare products • EMEA posted 18% revenue growth led by strong sales across all regions, particularly in the UK - [Laneige] Drove overall sales growth through continued success of Q1 product launches(‘Glaze Craze Tinted Lip Serum’, ‘Bouncy and Firm Serum’), and increased market presence by entering new channels in Northern Europe (H&M Beauty) - [Innisfree] Achieved sales growth and improved brand awareness through collaborative marketing campaigns with KOLs for the ‘Volcanic Clay Mask’ line - [COSRX] Diversified channels across key markets (Germany, Italy, and France) and strengthened marketing for its new product (‘Ceramide Moisturizer’) with local KOLs, increasing social media content and enhancing brand awareness 37.3 44.1 121.8 134.4 EMEA +10% +18% 159.1 178.5+12% 2024 2Q 2025 2Q Americas (Unit: bn KRW) Laneige‘Bubble Tea Collection’ (Global) Aestura‘Atobarrier 365’ COSRX ‘Airy-Light Invisible Sun Stick ’ (Global) Hanyul‘Yuja Brightening Sleeping Mask/Toner Pads’(US)
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114.6 125.3 107.7 132.7 ASIA Other Asia Greater China* +23% +9% 222.3 257.9 * Greater China: China Mainland, Hong Kong SAR, Taiwan Region • Greater China revenue increased 23% - [China] Posted growth due to low base from last year by downsizing inventory in major online channels. China business turned to profit for two consecutive quarters with improved business structure and cost reduction measures - Strengthened market responsiveness and growth momentum through new product launches, including Sulwhasoo(renewed ‘Essential Duo’), Laneige(‘Glaze Craze Tinted Lip Serum,’ ‘Lip GlowyBalm’), and Ryo (‘Hair Strength Aroma Perfume Shampoo Hangzhou Edition,’ ‘CICA Scalp Calming Shampoo’) - Acquired new customers by operating pop-up stores for hero products such as Sulwhasoo‘Ginseng’ line and Ryo ‘Root:Gen’ (Unit: bn KRW)2024 2Q 2025 2Q 9 Aesturalaunch of ‘Theracne365 line’ (Japan)Laneige collaborative marketing of ‘Glaze Craze Tinted Lip Serum’ (APAC) • Other Asia(APAC, Japan) revenue increased 9% - [APAC] Sulwhasooincreased customer purchase with its global campaign (‘First Care Activating Serum’), Laneige enhanced brand attractiveness and drove sales growth for its ‘Bouncy and Firm’ line through collaborative marketing and pop-up event with a local brand, and emerging brands (Aestura/Hera/Illiyoon) expanded brand presence in both online and offline channels - [Japan] Enhanced brand appeal of Laneige(‘Neo Cushion Mewy’, ‘Gel Cream Skin’) and Aestura(‘Theracne365’) through innovative products and achieved strong sales growth for major brands (Laneige/Aestura/Primera/Hera) via co-marketing activities with major multi-brand shop retailers (@cosme Tokyo Cushion Festa, Loft pop-up store) 2Q 2025 Overseas Business +16% Ryo launch of ‘CICA Scalp Calming Shampoo’ (China) Sulwhasoo‘Ginseng’ pop-up store (Xi’an, China)
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2024.12 2025.06 Asset 6,783.5 6,764.5 Current Assets 1,734.8 1,813.7 Trade Receivables 386.3 311.9 Inventories 497.8 463.9 Non-current Assets 5,048.7 4,950.8 Property, Plant and Equipment 2,296.4 2,268.9 Intangible Assets 1,773.9 1,743.7 Investment in Associates 5.8 5.5 Liabilities 1,457.5 1,392.1 Current Liabilities 1,095.7 1,043.1 Non-Current Liabilities 361.8 349.0 Shareholder’s Equity 5,326.0 5,372.4 Capital Stock 34.5 34.5 Retained Earnings 4,601.0 4,670.9 Non-controlling Interest 73.6 67.8 2024 2Q 2025 2Q Amount % of Sales Amount % of Sales Revenue 904.8 100.0% 1,005.0 100.0% Cost of Sales 266.7 29.5% 275.1 27.4% Gross Profit 638.1 70.5% 729.9 72.6% SG&A Expensed 633.9 70.1% 656.2 65.3% Operating Profit 4.2 0.5% 73.7 7.3% Other Income 509.7 -21.2 Proft Before Tax 513.8 56.8% 52.4 5.2% Consolidated Net Income 530.6 58.6% 37.6 3.7% AmorepacificFinancial Summary Income Statement Statement of Financial Position Unit. Bn KRW (%) Unit. Bn KRW 10