Cheil Worldwide (030000) Q1 2025 earnings summary

Executive summary

• Gross profit increased 11% year-over-year, driven by expansion in ATL business and new non-Samsung clients.

• Operating profit rose 7% year-over-year despite higher SG&A from labor cost investments.

• Digital business maintained double-digit growth, especially in dotcom and commerce segments.

• Overseas markets (NA, MENA, LA) and Seoul office both posted solid growth.

Financial highlights

• Revenue grew from KRW 390.7B in Q1 2024 to KRW 433.5B in Q1 2025 (+11%).

• Operating profit increased from KRW 54.5B to KRW 58.5B (+7%).

• Net income declined from KRW 43.4B to KRW 28.0B (-35%) due to higher non-operating expenses.

• SG&A expenses rose 12% year-over-year, mainly from increased salaries.

• Operating margin slightly decreased from 13.9% to 13.5%.

Outlook and guidance

• Targeting top-line growth rate of 5%+ year-over-year and improved profitability.

• Plans to expand digital, retail, and data-centered businesses.

• Focus on developing new non-Samsung clients in industries like automobile, healthcare, and travel.

• Continued emphasis on operational excellence and shareholder value through M&A and strong returns.