COWAY (021240) Q1 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth of 17.3% year-over-year, reaching historical highs in both quarterly revenue and operating profit for 1Q'25.

• Leading provider of environmental home appliances, specializing in water purifiers, air purifiers, and bidets, with over 7.21 million rental and membership accounts as of March 2025.

• Overseas subsidiaries, especially Malaysia, U.S., and Thailand, delivered robust revenue and profit growth, with the U.S. turning to operating profit.

• 90%+ of revenue is generated from the environmental appliance segment, with rental sales accounting for 90.6% of total sales in Q1 2025.

• Ongoing commitment to ESG management, product innovation, and sustainability, including significant R&D and environmental initiatives.

Financial highlights

• 1Q'25 consolidated revenue: KRW 1,174.9bn (+17.3% YoY); operating profit: KRW 211.2bn (+9.0% YoY); net profit: KRW 138.9bn (+8.8% YoY); basic EPS: KRW 1,932.

• Domestic business revenue: KRW 678.6bn (+10.8% YoY); overseas subsidiaries revenue: KRW 446.7bn (+25.8% YoY).

• Gross profit margin: 64.4%; operating margin: 18.0%; net margin: 11.8%.

• Total assets as of March 2025: KRW 6,014.5bn; total equity: KRW 3,151.4bn.

• Cash and cash equivalents: KRW 110.7bn (down from KRW 129.0bn YoY).

Outlook and guidance

• Reached 26% of annual revenue guidance and 25% of operating profit guidance in 1Q'25, indicating strong progress toward full-year targets.

• Dividend policy targets a payout of 40% of consolidated net income for 2024–2027, with ongoing share buybacks and cancellations to enhance shareholder value.

• Plans to continue strengthening market confidence and shareholder-friendly policies.

• Continued focus on expanding rental business, product innovation, and ESG initiatives.