Cheil Worldwide (030000) Q4 2024 earnings summary

Executive summary

• Revenue grew 7% year-over-year to KRW 1,727.5B, driven by BTL and digital business expansion in both domestic and overseas markets.

• Operating profit increased 4% year-over-year to KRW 320.7B, limited by higher labor costs from digital specialist hiring.

• Net income rose 10% year-over-year to KRW 208.3B, with a notable 124% increase in Q4 net income compared to the prior year.

• Digital services accounted for 54% of total revenue, with BTL services up 19% and strong growth in NA, LA, and MENA regions.

• Dividend for FY2024 set at KRW 1,230 per share, with a payout ratio of 60%.

Financial highlights

• Q4 2024 revenue was KRW 454.8B, up 6% year-over-year; full-year revenue reached KRW 1,727.5B, up 7%.

• Q4 operating profit was KRW 82.4B, up 8% year-over-year; full-year operating profit was KRW 320.7B, up 4%.

• Q4 net income was KRW 38.8B, up 124% year-over-year; full-year net income was KRW 208.3B, up 10%.

• SG&A expenses increased 7% year-over-year, mainly due to a 10% rise in salaries.

• Operating profit margin for 2024 was 18.6%, down 0.4 percentage points from 2023.

Outlook and guidance

• 2025 targets top-line growth of 5% or more year-over-year and aims for improved profitability.

• Plans to expand digital, retail, and data-centered businesses, and develop new non-Samsung clients in sectors like automobile, healthcare, travel, and F&B.

• Focus on operational excellence, M&A, and maintaining strong shareholder returns.