Amorepacific and Proya share overseas push but Q3 results split on brand costs

Two of Asia’s largest beauty groups grew sales in the third quarter of 2026, but only one turned the growth into greater profits. South Korea’s Amorepacific Group lifted operating profit by nearly a quarter, while China’s Proya Cosmetics saw net profit drop over 60% as marketing costs climbed. 

Amorepacific Group reports Q3 revenue of KRW 1.2073 trillion (US$900 million), up 8.9% year-on-year, and operating profit of KRW 130.1 billion (US$97 million), up 24.7%. Proya reports Q3 revenue of RMB 2.25 billion (US$339 million), up 29.8%, while net profit attributable to shareholders fell 61.2% to RMB 88.2 million (US$13.3 million). 

The companies are building multi-brand portfolios and expanding abroad, and both credit younger brands for much of their growth. The difference lies in what that growth has cost them.

Amorepacific balances growth and margins

Amorepacific Group’s operating margin widened 1.4 percentage points to 10.8% in Q3, up from 9.4% the previous year. The group has posted revenue growth for nine consecutive quarters.

Its leading subsidiary, Amorepacific Corp, drove the improvement, with revenue up 11% to KRW 1.1295 trillion (US$842 million) and operating profit up 25% to KRW 115.2 billion (US$86 million). 

Korea delivered the biggest profit gain for the K-beauty giant. Domestic revenue grew 11% to KRW 620.5 billion (US$463 million), while operating profit jumped 42% to KRW 84.6 billion (US$63 million). The company credits the strong sales of its brands, Sulwhasoo, Hera, Aestura, and Illiyoon, alongside double-digit growth in e-commerce, multi-brand stores, and travel retail. 

Overseas revenue rose 12% to KRW 495.5 billion (US$370 million), and operating profit rose 14%. In the Americas, Aestura grew more than 100%, and Innisfree grew by over 50%. In Japan, Aestura and Cosrx more than doubled, while revenue in India rose by over 60%.

Proya and Amorepacific are increasingly relying on brands. Amorepacific’s derma brand Aestura grew revenue by more than 80% globally, and Illiyoon’s overseas revenue grew sixfold.Amorepacific turns Q3 sales growth into higher profits. 

The group names derma and hair care as its next growth pillars as it works toward a target of KRW 15 trillion (US$11.2 billion) in revenue by 2035.

However, not every business under Amorepacific improved. Combined revenue in the group’s other beauty subsidiaries — Innisfree, Etude, Espoir, and Amos Professional — fell 12%, and their operating profit dropped 29%. The group attributes the declines to restructuring, including distribution channel optimization.

Amorepacific Corp’s net profit also fell 14.3% to KRW 58.5 billion (US$44 million). It was weighed down by non-operating costs, according to Yonhap News Agency. The company did not disclose those costs at the time of publication.

Proya pays for growth

In Q3, Proya’s revenue rise marks a sharp acceleration from the first half of 2026 — when sales were almost flat. However, the quarterly report also showed that extra sales came with higher spending.

The Chinese beauty company mostly attributes the profit decline to brand promotion and advertising. It cites three factors: increased publicity during the launch period for its flagship brand’s hero products, more investment behind fast-growing brands such as Flower Knows, Insbaha, Off&Relax, and Awaken Seeds, and adjustments to its channel structure and the timing of paid traffic.

Sales expenses for the first nine months reached RMB 4.06 billion (US$610 million), up 15.2% year-on-year. Excluding non-recurring items, Q3 net profit fell 65.2% to RMB 79 million (US$11.9 million). Gross margin narrowed to 69.8%, down from 74.3% in the first half of the year in Q3. 

Chinese financial news outlet Cailian Press also reported that average selling prices fell across Proya’s main product categories. Heavy marketing spend cuts into Proya’s Q3 profits. 

Proya’s nine-month figures are stronger. Revenue rose 7.5% to RMB 7.63 billion (US$1.15 billion), and net profit rose 22.5% to RMB 1.26 billion (US$189 million). However, the total includes a one-off gain of RMB 445 million (US$67 million) from remeasuring its earlier stake in Flower Knows when it took control of the makeup brand. Stripping out non-recurring items, nine-month net profit fell 25.5% to RMB 743 million (US$112 million). 

Part of the Q3 revenue jump came from Flower Knows. Analysts from Chinese brokerage and investment bank, Guoyuan Securities, link the strong quarter partly to the brand’s consolidation. They noted that makeup revenue rose 248.5% while skin care, Proya’s largest category, fell 8.3%. 

The results highlight the financial pressures facing Chinese cosmetics companies as they invest in international expansion amid weaker domestic consumer demand. After China’s online beauty sales fell 6% year-on-year in September, Personal Care Insights looked at how Proya is preparing to roll out its namesake brand across around 400 Ulta Beauty stores in the US this month and has opened a research lab in France. 

In tandem with the results release, Proya plans to cancel around 1.63 million repurchased shares. This makes up approximately 0.41% of its share capital. The shares were originally bought back for employee incentive schemes. Cailian Press describes the move as an effort to shore up investor confidence. The company will hold an online results briefing on November 17.