Able C&C (078520) Q4 2022 earnings summary

Executive summary

• FY2022 revenue fell 5.7% YoY to ₩247.9bn, while operating income swung to ₩10.0bn from a ₩22.4bn loss, supported by cost and operating efficiency measures.

• Net income was ₩1.1bn, versus a ₩43.4bn net loss in FY2021; management cited headquarters relocation, inventory management improvements, and channel efficiency.

Financial highlights

• Consolidated revenue was ₩247.9bn, down from ₩262.9bn; gross profit rose to ₩142.1bn from ₩129.9bn as cost of sales declined 20.6% YoY.

• Operating income was ₩10.0bn versus an operating loss of ₩22.4bn; consolidated pretax income was ₩6.3bn and net income ₩1.1bn.

• Net income attributable to owners was ₩935m; basic and diluted EPS were ₩36, compared with losses of ₩43.3bn and EPS of -₩1,666 in FY2021.

• Standalone revenue was ₩192.0bn, operating income ₩9.1bn, and net income ₩4.1bn, compared with operating and net losses in FY2021.

Outlook and guidance

• FY2023 priorities: strengthen the multi-brand portfolio, expand overseas growth, and advance digital transformation; continue cost reduction and expense efficiency to improve profitability.

• Management expects export mix to keep increasing as overseas markets expand; sales-channel diversification is intended to attract new customers and support growth.

• A 2023–2027 business plan assumes sales and profitability recover to pre-COVID levels, but management flagged high uncertainty around those projections.