Amorepacific shares surge as it increases stake in Cosrx

2023.10.31 11:13:02 | 2023.10.31 17:25:41

Amorepacific’s headquarters in Seoul. [Courtesy of Amorepacific]이미지 확대

Amorepacific’s headquarters in Seoul. [Courtesy of Amorepacific]

Amorepacific Corp. saw a surge in its stock price Tuesday morning after its decision to increase its stake in Cosrx, a move aimed at boosting South Korean beauty and cosmetics giant’s presence in the global skincare market.

As of 9:05 am on Tuesday, Amorepacific’s shares were trading at 122,900 won ($92), up 7.91 percent from the previous day’s closing price on the Kospi.

Before the opening bell, Amorepacific Group reported a decline in its third-quarter financial performance. According to preliminary data, the company’s operating profit for the July-September period was 28.8 billion won on a consolidated basis, down by 12.7 percent from a year earlier.

While Amorepacific witnessed sales growth in international markets such as the Americas, Europe, the Middle East, and Africa (EMEA), and Japan, it faced challenges in duty-free sales, global e-commerce, and the Chinese market, leading to an overall decline in its revenue.

Despite the prolonged sluggish performance, the company’s decision to acquire an additional 288,000 shares of Cosrx at 755.1 billion won generated positive expectations among investors, leading to the stock price surge. This move solidifies Cosrx as an Amorepacific subsidiary, with the company now holding a 93.2 percent stake in Cosrx.

Amorepacific’s strategic decision to further invest in Cosrx reflects its determination to expand its presence in the global cosmetics industry and capitalize on Cosrx’s strong brand reputation in the beauty market.

By Pulse

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