Seoul: Amorepacific Corp., South Korea's leading cosmetics company, reported a staggering 92.9 percent drop in its second-quarter net profit compared to the previous year, attributed to a base effect. For the three months ending June 30, the net profit fell to 37.6 billion won (US$26.9 million) from 530.59 billion won recorded a year earlier, as stated in a regulatory filing by the company.

According to Yonhap News Agency, the significant decline was primarily due to the high base effect from the previous year when Amorepacific reflected 400 billion won in equity gains and translated corporate value from its skincare brand COSRX in its financial results. In contrast, the recent quarter only accounted for shareholding gains. Amorepacific had acquired COSRX in 2023, and its earnings started impacting the parent company's financials from May of the previous year.

Despite the sharp decline in net profit, the company's operating profit experienced a remarkable surge, increasing to 73.7 billion won from 4.15 billion won in the previous year. Sales also rose by 11.1 percent, reaching 1 trillion won from 904.8 billion won. Amorepacific attributed the improved operating results to increased sales of its premium cosmetics brands, including Hera, Laneige, and Aestura, particularly in the United States and Europe.

For the first half of 2025, the company reported a 74.4 percent decrease in net income, which amounted to 156.58 billion won compared to 610.71 billion won during the same period last year. Conversely, operating profit more than doubled to 191.39 billion won from 76.83 billion won, alongside a 14.1 percent rise in sales to 2.07 trillion won from 1.82 trillion won.