COWAY (021240) Q3 2024 earnings summary

Executive summary

• Achieved historical high quarterly revenue and net profit in 3Q'24, reaching 75% of annual revenue and 80% of operating profit guidance.

• Revenue for the first nine months of 2024 was ₩3,184.4 billion, with rental sales accounting for 91.6% of total revenue.

• Operating income for the same period was ₩612.0 billion, and net income attributable to controlling interests was ₩461.4 billion.

• Surpassed 10 million total rental accounts, with strong growth in both domestic and overseas markets.

• Maintains a leading position in the domestic environmental home appliance market, with approximately 7 million rental and membership accounts as of September 2024.

Financial highlights

• 3Q'24 consolidated revenue KRW 1,100.3bn (+9.2% YoY), operating profit KRW 207.1bn (+6.0% YoY), net profit KRW 179.5bn (+31.0% YoY).

• Revenue for the first nine months of 2024 was ₩3,184.4 billion, down from ₩3,966.5 billion in 2023.

• Gross margin for 3Q'24 was 64.3%, with net margin improving to 16.3% (+2.8%p YoY).

• Operating income for the first nine months was ₩612.0 billion, down from ₩731.3 billion YoY.

• Cash and cash equivalents at period-end were ₩113.9 billion, down from ₩260.3 billion at the end of 2023.

Outlook and guidance

• 2024 guidance achievement at 75% for revenue and 80% for operating profit as of 3Q.

• Focus on expanding rental business, strengthening digital/offline channels, and launching AI/IoT products.

• ESG management and sustainability initiatives remain a core part of the long-term strategy, including a target to achieve net zero carbon emissions by 2050.

• Stable rental account growth and continued expansion of overseas proportion targeted.