APR (278470) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenue in 2Q 2024, driven by strong growth in beauty devices and cosmetics, with global sales expansion contributing significantly.

• Operates primarily in home beauty devices and cosmetics, with integrated R&D, production, and sales value chain for devices and multiple cosmetic brands targeting diverse consumer needs.

• Beauty device and cosmetics/beauty segments each grew over 33% year-over-year, now accounting for 90% of total sales in 1H 2024.

• 2024 H1 sales split: home beauty devices 44%, cosmetics/beauty 45%, with domestic sales at 53% and overseas at 47%.

• Listed on KOSPI in February 2024; expanded global presence with 14 subsidiaries, including new Vietnam entity.

Financial highlights

• 2Q 2024 revenue reached KRW 155.5bn, up 21.8% year-over-year; operating profit was KRW 28bn (+13.0% YoY); net profit was KRW 24.1bn (+28.4% YoY).

• 1H 2024 revenue totaled KRW 304.4bn (+21.8% YoY); operating profit KRW 55.8bn (+16.3% YoY); net profit KRW 48.2bn (+23.4% YoY).

• Cash and equivalents at H1 2024: KRW 114.0bn, up from KRW 57.3bn at end-2022.

• Total assets at H1 2024: KRW 464.8bn; equity: KRW 308.7bn.

• Gross profit for 1H 2024 was KRW 175.1bn.

Outlook and guidance

• Continued focus on global expansion, new product launches, and B2B sales growth, with several new markets entered in 2Q 2024.

• Plans to expand device production capacity and launch new products to meet rising demand.

• In-house production of PDRN/PN to enhance competitiveness in cosmetics and medical devices, with phased rollouts planned through 2025.

• Focus on global expansion, especially in the US and Japan, leveraging cross-selling between devices and cosmetics.

• Multiple new beauty device launches scheduled domestically and internationally through 2025.