Able C&C (078520) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached ₩65.7 billion, down 11.9% year-over-year, with operating profit up 34% to ₩5.2 billion and net profit surging 311% to ₩3.6 billion, driven by improved cost structure and channel portfolio optimization.

• Operates as a global multi-brand beauty company with a focus on skincare, makeup, and personal care, leveraging brands like Missha and A'PIEU in over 41 countries.

• Emphasizes ESG management and sustainable growth, with ongoing efforts in environmental responsibility and product innovation.

• Despite lower duty-free sales, profitability improved through reduced cost of goods sold and SG&A expenses.

Financial highlights

• Q2 2024 revenue: ₩65.7 billion, down 11.9% year-over-year.

• H1 2024 consolidated revenue: ₩132.5 billion, down from ₩273.6 billion in H1 2023.

• Operating profit: ₩5.2 billion in Q2 2024, up 34% year-over-year; operating margin rose to 7.8%.

• Net profit: ₩3.6 billion in Q2 2024, up 311% year-over-year; H1 2024 net income attributable to controlling interests was ₩7.7 billion.

• EBITDA: ₩8.0 billion in Q2 2024, up 28.8% year-over-year.

• 10 consecutive quarters of profitability since Q1 2022.

• Basic EPS for H1 2024 was ₩294, up from ₩236 in H1 2023.

• Cash and cash equivalents at period end were ₩31.1 billion.

Outlook and guidance

• Continued focus on channel diversification, overseas expansion, and product innovation to sustain profitability.

• Growth expected in international markets, especially Japan, China, and the US, leveraging strong product launches and influencer collaborations.

• Plans to increase the share of eco-friendly and certified products in response to market trends.