Misto Holdings (081660) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 1,049bn, up 6.0% year-over-year, with strong demand in Korea and China, and robust Acushnet performance.

• 2024 1-3Q consolidated revenue was KRW 3,407.4bn, up 5% year-over-year.

• Operating profit for 1-3Q 2024 was KRW 396.8bn, up 15% year-over-year.

• Net income for Q3 was KRW 53bn, down 7.6% year-over-year, but nine-month net income rose 30% to KRW 277bn; net income attributable to controlling interests was KRW 141.4bn, up 75% year-over-year.

• Announced partial discontinuation of FILA U.S.A. Inc. North America business to address losses and improve cash flow.

Financial highlights

• Consolidated gross profit increased 15.8% year-over-year to KRW 567bn, with gross margin improving to 54.0%.

• Acushnet revenue grew 8.4% year-over-year to KRW 844bn, with operating profit up 10.7%.

• FILA USA revenue declined 18.8% year-over-year, but gross profit surged 186.6% due to reduced promotions and inventory.

• FILA segment 1-3Q revenue: 685.5bn KRW (flat year-over-year); Acushnet segment: 2,721.8bn KRW (+6.3% year-over-year).

• Basic EPS for 1-3Q 2024: 2,362 KRW (up from 1,344 KRW year-over-year).

Outlook and guidance

• 2024 full-year consolidated revenue guidance: -5% to +5% year-over-year.

• Adjusted consolidated operating profit outlook excludes the KRW 18bn one-off restructuring expense; guidance: +30% to +40% year-over-year.

• FILA USA expected to post an operating loss of 50–70bn KRW due to North America restructuring.

• Acushnet expects FY2024 adjusted EBITDA growth of 5.0% at the mid-point.

• Currency assumptions updated to reflect a stronger USD/KRW exchange rate of 1,352.14.