Cheil Worldwide (030000) Q2 2024 earnings summary

Executive summary

• 2024 first half consolidated revenue reached ₩2,107.5 billion, up 10.2% year-over-year, with consolidated gross profit at ₩844.2 billion, up 7.0% year-over-year.

• Operating profit for the period was ₩142.8 billion, a 3.4% increase year-over-year; net profit attributable to controlling interests was ₩108.8 billion, up 2.0% year-over-year.

• Digital services accounted for 54% of the total service mix, up 8 percentage points year-over-year.

• Non-Samsung client portfolio expanded to 27% of total clients, with notable growth in NA/LA/MENA regions.

• The company operates a global network in 46 countries, with 91 consolidated subsidiaries as of June 2024.

Financial highlights

• Consolidated revenue: ₩2,107.5 billion (up 10.2% YoY); consolidated gross profit: ₩844.2 billion (up 7.0% YoY).

• Operating profit: ₩142.8 billion (up 3.4% YoY); net profit: ₩108.8 billion (up 2.0% YoY).

• Q2 2024 revenue: KRW 453.4B (+7% YoY); Q2 2024 operating profit: KRW 88.2B (+4% YoY).

• SG&A expenses increased 8% YoY, mainly due to higher labor investment in digital-focused roles.

• Number of employees grew to 7,334 as of June 2024, with overseas headcount at 5,856.

Outlook and guidance

• Targeting 5% top-line growth in 2H 2024, with a focus on margin defense.

• Plans to expand digital business, CRM, and performance marketing services.

• Ongoing focus on global expansion and digital transformation to drive future growth.

• Continued development of non-Samsung clients, especially in NA and China.

• Exploring M&A and new digital business opportunities, including generative AI.