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Biz News Korea(Eng)
Toothpaste recall costs hit Amore Pacific’s Q3 earnings
- Collected
- 2016.11.03
- Distributed
- 2016.11.04
- Source
- Go Direct
Amore G announced on Tuesday its July-September operating profit reached 219.7 billion won ($191 million) on a consolidated basis. That was a 16.7 percent rise from a year ago, but fell short of market expectations of 281.7 billion won. Sales gained 22.9 percent to 1.65 trillion won in the same period. Net profit lost by 0.4 percent to 151.4 billion won after reflecting cost of recall on toothpastes containing toxic chemical.
Amore Pacific had to remove and recall its popular toothpaste products after reports they contained toxic humidifier disinfectants.
Analysts had forecasted 220 billion won (up 35 percent from a year ago) for Amore Pacific’s third-quarter operating profit, but the actual figure grew a mere 2.5 percent as cash reserve was offset by recall costs. Overseas sales, however, remain robust.
Amore G’s stock price slid to the 155,000 won level from the 210,000 won level in June. The price-book ratio also fell from about seven times to below five times, suggesting the stock price could likely bounce back, analysts said.
Amore G shares ended on Wednesday at 146,500 won, down 4,000 won, or 2.66 percent, from the previous session.
By Kang Da-young and Lee Yong-gun
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