COWAY (021240) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue, operating profit, and net profit in 2Q'24, meeting 49% of annual revenue and 53% of operating profit guidance.

• Specialized in environmental home appliances, leading domestic market with 6.93 million rental/membership accounts as of June 2024.

• Over 91% of revenue from rental business; expanding product lineup and overseas operations.

• Recently completed a physical spin-off of the cosmetics business to enhance business focus.

• Overseas subsidiaries maintained growth, with Malaysia and Thailand showing strong account and revenue increases, while the U.S. faced a YoY revenue decline due to a high base effect.

Financial highlights

• 2Q'24 consolidated revenue: KRW 1,082.3bn (+7.6% YoY); operating profit: KRW 211.2bn (+8.8% YoY); net profit: KRW 154.2bn (+43.9% YoY).

• H1 2024 consolidated revenue: KRW 2,084.1bn (+6.6% YoY); operating profit: KRW 404.9bn (+9.5% YoY); net profit: KRW 281.9bn (+21.3% YoY).

• H1 2024 basic EPS: KRW 3,896; cash and equivalents at period end: KRW 113.8bn.

• Gross margin for H1 2024: 64.9%; operating margin: 19.4%.

• Dividend payout for H1 2024: KRW 97.96bn; dividend policy targets 20% payout ratio.

Outlook and guidance

• 2024 guidance achievement at 49% for revenue and 53% for operating profit as of 2Q'24.

• Focus on expanding rental business and overseas markets, especially in Asia and North America.

• Continued investment in R&D and ESG initiatives, with a target to reduce greenhouse gas emissions by 50% by 2030.

• Targeting stable rental account growth and continued expansion of overseas proportion.

• No specific quantitative forward guidance disclosed.