Value Added Technology (043150) Q1 2025 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 101.3 billion in 1Q25, up 7.5% year-over-year, driven by expanded U.S. dealer network and increased 3D product sales.

• Operating profit rose 28.4% sequentially to KRW 13.2 billion, but declined 8.2% year-over-year due to higher costs and SG&A expenses.

• Net income decreased 32.3% year-over-year to KRW 11.7 billion, impacted by lower equity method income.

Financial highlights

• Gross profit margin was 52.9%, up 1.2 percentage points sequentially but down 0.5 points year-over-year.

• Operating profit margin improved to 13.0% from 10.1% in the previous quarter, but down from 15.3% a year ago.

• Net profit margin declined to 11.5% from 18.3% in 1Q24.

• 3D (CBCT) product sales grew 0.9% year-over-year and 9.4% sequentially, while IOX and related products surged 50.2% year-over-year.

Outlook and guidance

• Plans to expand 3D premium and entry product sales in response to market shift from 2D to 3D.

• Focus on strengthening product quality, technology, and customer service to enhance market dominance.

• Targeting developed markets with large FOV models and emerging markets with entry-level models.