Cosmax (192820) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw robust growth in Korea and Southeast Asia, slow recovery in China, and negative growth in the US.

• Net profit turned positive year-over-year, with significant improvement in operating profit margin.

• Strong demand for indie brands and exports drove Korea's performance, while Southeast Asia benefited from local brand preference and export growth.

Financial highlights

• Q4 2024 consolidated sales reached 558.0 KRW bn, up 27.8% year-over-year.

• Operating profit rose 76.8% to 39.8 KRW bn; net profit turned positive at 12.9 KRW bn.

• Gross profit increased 40.2% to 108.0 KRW bn; OPM hit a record 7.2% for Q4.

• COGS ratio was 82.8%, SG&A cost ratio 8.2%, aided by a 2bn bad debt reversal.

Outlook and guidance

• Continued strong demand expected in Korea and Southeast Asia.

• China market remains challenging but shows signs of improvement, especially in Guangzhou.

• US outlook cautious due to order delays and slow new client ramp-up.