APR (278470) Q4 2024 earnings summary

Executive summary

• Achieved record-breaking consolidated sales of KRW 244.2 billion in Q4 2024, a 60.6% YOY increase, and annual sales of KRW 723 billion, up 43% YOY, marking 40 consecutive quarters of YOY growth.

• Both cosmetics and beauty device divisions surpassed KRW 100 billion in quarterly sales, with cosmetics growing over 100% YOY and beauty devices 47% YOY.

• Overseas sales surged to KRW 156 billion in Q4, up 135% YOY, raising the overseas sales proportion from 44% to 64%, driven by strong U.S. and B2B performance.

• Net profit for Q4 was KRW 41.98 billion (+74.2% YOY); annual net profit reached KRW 106.18 billion (+30.2% YOY), driven by higher interest income and investment gains.

Financial highlights

• Q4 operating profit was KRW 39.64 billion (+15.4% YOY); annual operating profit was KRW 123 billion (+18% YOY).

• Interest income and investment gains contributed over KRW 10 billion to net profit.

• Marketing expenses in Q4 were about 70% of total sales; logistics fees were in the high 8% range, down from Q3.

• Gross profit for FY 2024 was KRW 540.58 billion, with gross margin improving YOY.

• Inventory turnover improved, with most provisions recognized in 2024.

Outlook and guidance

• 2025 sales target set at KRW 1 trillion, with operating profit guidance of KRW 170–180 billion (17–18% margin).

• Expecting continued strong growth in U.S., Japan, and global B2B channels, with three to four new product launches planned.

• Strategic expansion planned in Europe, Middle East, and Southeast Asia; targeting 3,000 stores in Japan for Medicube cosmetics.

• Forecasts a threefold increase in B2B sales in 2025.