AmorePacific, whose brand portfolio includes Etude and Innisfree, said its net profit for the fourth quarter ended Dec. 31 fell 4.3 percent to 88 billion won, or $75.74 million, while operating profit slid 16.5 percent to 134 billion won, or $115.33 million. Sales increased 7.3 percent to 1.56 trillion won, or $1.34 billion.
This past fall, the Korean company recalled some of its toothpastes, including those from the Median brand, after traces of CMIT/MIT preservative were found in some of the products.
“CMIT/MIT is common toothpaste preservative around the world, [but] it is not a registered substance for use in toothpastes in regulations provided by the Korean Ministry of Food and Drug – hence we issued the recall,” a spokeswoman said. “We’ve strictly re-evaluated our manufacturing processes (including the raw materials management) to further ensure that our products meet the highest safety standards.”
The company said full-year sales and operating profit at its international business grew more swiftly than that of its larger domestic Korean business thanks to strong sales in Asia, new products and store openings.
AmorePacific’s full-year international sales rose 35 percent to 1.70 trillion won, or $1.46 billion, while the company’s Korea sales grew 12 percent to 4 trillion won, or $3.44 billion.
On a consolidated basis, AmorePacific’s full-year net profit rose 20.4 percent to 811.5 billion won, or $698.46 million, while operating profit grew 18.5 percent to 1.08 trillion won, or $929.55 million. Sales grew 18.3 percent to 6.70 trillion won, or $5.77 billion.