Value Added Technology (043150) Q3 2024 earnings summary

Executive summary

• 3Q24 revenues reached KRW 87.3 billion, down 0.4% year-over-year and 14.4% sequentially from 2Q24, mainly due to reduced sales in emerging markets despite growth in advanced markets.

• Operates a global dental imaging business with 22 domestic and overseas subsidiaries, focusing on digital X-ray and CT equipment for dental clinics and hospitals.

• Maintains a strong R&D focus, with over 400 intellectual property rights and continuous product innovation, including AI-based solutions and premium CT models.

• Holds a leading market share domestically and is expanding globally, with sales in over 100 countries and a robust distribution and service network.

• Operating profit declined 26.5% year-over-year to KRW 12.5 billion, impacted by higher labor and SG&A costs.

Financial highlights

• Gross profit margin improved to 54.2% in 3Q24, up 0.5 percentage points year-over-year.

• Operating profit margin was 14.3%, down from 19.3% in 3Q23.

• Net profit margin fell to 8.3% from 20.9% in 3Q23.

• Consolidated revenue for the first nine months of 2024 was 283,487 million KRW, down from 384,945 million KRW in 2023.

• Gross margin remained strong, with a gross profit of 151,601 million KRW on sales of 283,487 million KRW.

Outlook and guidance

• Focus on expanding 3D product sales, especially premium and mid/entry models, to strengthen market dominance.

• Continues to invest in R&D and product upgrades, targeting premium and mid-tier markets with new models and AI-driven solutions.

• Expects ongoing global expansion, leveraging strong brand and product innovation to maintain leadership in dental CT and digital X-ray markets.

• Plans to address developed and emerging markets with targeted product launches and enhanced customer service.