Able C&C (078520) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ₩62.9 billion, a 3.7% decrease year-over-year due to restructuring of duty-free channels, while revenue for the first nine months of 2024 was ₩195.4 billion, down from ₩273.6 billion year-over-year.

• Operating profit surged 187% year-over-year to ₩3.9 billion in Q3, and operating income for the first nine months was ₩14.1 billion, up from ₩11.4 billion.

• Net profit rose 234.5% year-over-year to ₩3.9 billion in Q3, and net income attributable to controlling interests reached ₩11.6 billion for the period, nearly doubling from ₩6.1 billion.

• Maintained profitability for consecutive quarters since 2022.

Financial highlights

• Gross margin improved to 55.26% from 54.78% year-over-year, supporting higher operating profit.

• EBITDA increased 62.2% year-over-year to ₩6.6 billion.

• SG&A expenses fell 10.3% year-over-year, with notable reductions in commissions and advertising.

• Cash and cash equivalents at period-end were ₩19.1 billion, down from ₩28.1 billion at the previous year-end.

• Dividend payments for the period totaled ₩5.4 billion, with a payout ratio of 46.5%.

Outlook and guidance

• Focus on expanding domestic and international channels to offset reduced reliance on duty-free sales.

• Continued emphasis on cost control, profitability improvement, and ESG/sustainable product development.

• No specific quantitative forward guidance was provided.