APR (278470) Q3 2024 earnings summary

Executive summary

• Achieved record-high consolidated revenue of KRW 174.1 billion in Q3 2024, up 42.8% YoY, marking 39 consecutive quarters of YoY growth since 2014.

• Operates in home beauty devices and cosmetics, with major brands including Medicube, Aprilskin, and Forment, and a vertically integrated value chain for device R&D and production.

• Overseas sales surpassed domestic for the first time, surging 78.6% YoY to over KRW 100 billion and accounting for 58% of total sales.

• Expanded global presence with 14 consolidated subsidiaries, including a new Vietnam entity and liquidation of ADC.

Financial highlights

• Q3 2024 revenue: KRW 174.1 billion (+42.8% YoY); operating profit: KRW 27.2 billion (+24.6% YoY); net profit: KRW 16.0 billion (-12.9% YoY).

• Cumulative 2024 revenue: KRW 478.5 billion (+28.7% YoY); cumulative net profit: KRW 64.2 billion (+11.8% YoY).

• Beauty device sales: KRW 74.5 billion (+62.2% YoY); cosmetics: KRW 85.0 billion (+53.6% YoY); others: KRW 14.7 billion (-29.1% YoY).

• Total assets: KRW 483.9 billion (up from KRW 287.3 billion at end-2023); equity: KRW 281.5 billion.

• Cash and equivalents at Q3: KRW 47.6 billion, down from KRW 125.3 billion at 2023 year-end.

Outlook and guidance

• Q4 is expected to be the peak season, with continued strong sales anticipated due to secured inventory and ongoing global expansion, especially in the US, Japan, and Hong Kong.

• New product launches planned, including Ultra Tune in Japan and potential sunscreen products in cosmetics.

• Medical device production targeted for late 2025 or early 2026, with PDRN cosmetics production starting early next year.

• No explicit forward guidance provided, but industry data suggests continued growth in global cosmetics and home beauty device markets.