As Amorepacific's dermatology cosmetic brand COSRX, which it acquired in the past for around 930 billion won, set a new peak in quarterly sales, expectations are growing for improved results. COSRX had been considered Amorepacific's sore spot for a while after the acquisition as sales declined, but with the expansion of new product lines and the visible impact of European channel reshuffling, some expect this year's sales to top 500 billion won.
According to the securities industry on the 7th, COSRX posted sales of 152.3 billion won and operating profit of 38.1 billion won in the fourth quarter of last year. Sales rose 10.4% and operating profit 25.7% from a year earlier. It was the highest quarterly sales since COSRX became a subsidiary of Amorepacific in May 2024.
Amorepacific invested 180 billion won in 2021 to secure a 38.4% equity stake in COSRX and was also granted a call option to purchase the remaining shares. Amorepacific then injected an additional 755.1 billion won in Oct. 2023 to acquire the remaining 288,000 shares, lifting its stake in COSRX to 93.2%, and folded it in as a subsidiary in May 2024.
COSRX is cited as the largest brand Amorepacific has acquired to date. However, performance after becoming a subsidiary fell short of expectations. COSRX's sales fell from 150.6 billion won in the third quarter of 2024 to 137.9 billion won in the fourth quarter, and the sluggish trend continued in 2025 with 101.6 billion won in the first quarter, 96.7 billion won in the second quarter, and 99.4 billion won in the third quarter.
This was because competition in K-beauty intensified in major export markets, while the brand's freshness lagged, and lowering prices of key products to respond weighed on sales and profitability. Lee Gyo-seok, an analyst at Shinyoung Securities, said, "COSRX previously saw sales concentrate on the flagship product 'Snail Mucin Essence,'" and added, "Growth centered on a single product line was not suitable for sustaining momentum within a shortened product life cycle."
However, assessments say COSRX entered a full-fledged rebound phase from the second half of last year as new product effects and broader retail channels worked in tandem. By expanding new product lines such as peptides and PDRN (polydeoxyribonucleotide), its sales base widened, while in Europe the effects of distribution network reorganization and in the United States the effects of price stabilization are appearing simultaneously.
COSRX's sales recovery is expected to also help improve Amorepacific's profitability. COSRX's operating margin last year was 25.9%, well above Amorepacific's 7.9%. COSRX is expected to maintain a high operating margin in the mid-to-high 20% range this year as well.
The securities community expects COSRX's sales this year to surpass 500 billion won. Cho So-jeong, an analyst at Kiwoom Securities, said, "A lower base effect and the expansion of new product lines are driving COSRX's growth," adding, "Europe, the Middle East, and Africa are leading growth based on B2B (business-to-business) channels, and the United States is also seeing a recovery in volumes as price stabilization wraps up."