APR (278470) Q1 2025 earnings summary

Executive summary

• Achieved record-high Q1 2025 consolidated revenue of KRW 266 billion, up 79% year-over-year, surpassing previous seasonal peaks and driven by enhanced brand recognition and global market expansion.

• Operating profit doubled year-over-year to KRW 55 billion, with net profit up 107.3% to KRW 49.9 billion.

• Operates primarily in cosmetics and home beauty devices, with major brands including Medicube, Aprilskin, and Forment; home beauty device business is vertically integrated from R&D to sales.

• Listed on KOSPI in February 2024 and maintains a BBB+ credit rating.

Financial highlights

• Q1 2025 consolidated revenue: KRW 266 billion (+79% YoY); operating profit: KRW 55 billion (+97% YoY); net profit: KRW 49.9 billion (+107.3% YoY).

• Gross profit for Q1 2025 was KRW 200.9 billion; gross margin 43.5%.

• Overseas sales: KRW 190 billion (+186% YoY), now 71% of total sales.

• Cash and cash equivalents at Q1 2025: KRW 115.5 billion; total assets: KRW 581.2 billion.

• Financial income for Q1: KRW 4 billion, mainly from higher interest rates.

Outlook and guidance

• No plans to revise annual guidance of 17–18% growth, despite strong Q1 performance and external uncertainties.

• Management expects continued global demand and expansion, focusing on mature and emerging markets, especially the US, Japan, and emerging regions.

• Plans to expand production capacity for home beauty devices in response to rising demand and new product launches.

• Maintains a shareholder return policy of at least 25% of adjusted net income via dividends or share buybacks through 2026.

• Marketing expense rate expected to remain around 20% of sales for the year.