Cosmax (192820) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw consolidated sales rise 15.6% year-over-year to KRW 529.8 bn, with strong growth in Korea and Southeast Asia offsetting declines in China and the US.

• Operating profit increased 30.4% year-over-year to KRW 43.4 bn, and net profit surged 90.9% to KRW 20.6 bn.

• Korea led growth with a 20.8% sales increase and 52.7% rise in operating profit, while Southeast Asia posted robust gains; China and US subsidiaries remained sluggish.

Financial highlights

• Revenue reached KRW 529.8 bn, up 15.6% year-over-year; gross profit rose 24.8% to KRW 97.6 bn.

• Operating profit margin improved to 8.2%, driven by cost controls and reduced bad debt expense.

• Net profit nearly doubled to KRW 20.6 bn, despite a non-operating loss of KRW 20.8 bn from interest and exchange losses.

• Equity increased to KRW 475.5 bn, with retained earnings at KRW 381.1 bn.

Outlook and guidance

• Continued solid demand expected in Korea and Southeast Asia, with focus on indie brands and operational efficiency.

• China and US outlook remains cautious due to ongoing recessionary pressures and delayed customer inflows.