Cosmax (A192820) Q2 2024 earnings summary

Executive summary

• Consolidated sales reached 551.5 KRW bn, up 15.1% year-over-year, with Korea leading growth and Southeast Asia outperforming guidance.

• Operating profit rose 1.5% YoY to 46.7 KRW bn, while net income increased 28.9% YoY to 35.3 KRW bn.

• Korea saw robust export and domestic sales, while China faced weak consumer sentiment and the US normalized after a strong prior year.

Financial highlights

• Gross profit increased 35.0% YoY to 112.0 KRW bn, with a stable cost ratio at 79.7%.

• SG&A expenses rose 76.8% YoY, impacting operating leverage.

• Non-operating profit of 5 KRW bn and corporate income tax of 16.4 KRW bn were recorded.

Outlook and guidance

• Southeast Asia exceeded annual guidance, driven by strong category growth and favorable business conditions.