Cheil Worldwide (030000) Q1 2026 earnings summary

Executive summary

• Consolidated Q1 2026 revenue was KRW 1,017.6 billion, down 2.1% year-over-year, while consolidated gross profit rose 2.0% to KRW 442.3 billion.

• Operating profit was KRW 36.5 billion, down 37.6% year-over-year due to restructuring costs, and net income was KRW 28.3 billion, up 0.8%.

• Overseas operations contributed 69.9% of revenue and 79.9% of gross profit, with strong growth in North America, Latin America, and Southeast Asia.

• Retail and digital services expanded, with retail up 7% and digital up 3% year-over-year, now accounting for 31% and 54% of revenue, respectively.

• Non-Samsung client revenue increased 5%, now comprising 29% of total revenue.

Financial highlights

• Q1 2026 consolidated revenue: KRW 1,017.6 billion (down 2.1% YoY); gross profit: KRW 442.3 billion (up 2.0% YoY).

• Operating profit: KRW 36.5 billion (down 37.6% YoY); net income: KRW 28.3 billion (up 0.8% YoY).

• SG&A expenses increased 8.2% YoY to KRW 405.8 billion.

• Dividend per share: KRW 1,230; total dividend: KRW 124.6 billion; payout ratio maintained at 60% through 2027.

• Total assets: KRW 3,433.4 billion; total equity: KRW 1,539.6 billion.

Outlook and guidance

• Focus on digital and retail core, targeting over 70% revenue share from these segments.

• Digital advertising and AI-driven marketing solutions expected to drive growth amid a challenging domestic market.

• Global advertising market projected to grow 5.1% in 2026, with digital and event-driven demand leading.

• Continued expansion in D2C and digital solutions to drive future growth.

• Ongoing acquisition of new clients in both domestic and overseas markets.