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.

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

• Net income dropped 60.3% year-over-year to KRW 7.3 billion, affected by lower operating profit and foreign exchange effects.

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.

• 4-year revenue CAGR (2020-2024) stands at 16.4%.

Outlook and guidance

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

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