Misto Holdings (081660) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached KRW 1,175bn, up 2.5% YoY, and H1 2024 consolidated revenue was KRW 2,357.9bn, up 4.5%, driven by strong performance in China, Korea, and Acushnet's golf business.

• Operating profit surged 52.4% in Q2 to KRW 140bn and 20.2% in H1 to KRW 303.4bn, with net income up 170% in Q2 and 135% in H1.

• Acushnet remains the primary profit driver, accounting for nearly 80% of sales and 99% of operating profit, while FILA segment is executing a turnaround.

• The company continues its 'Winning Together' 5-year strategy, focusing on premium brand positioning and global expansion.

• FILA Korea saw modest revenue growth and strong profit gains, while FILA USA faced revenue decline and margin pressure.

Financial highlights

• Consolidated gross margin improved to 53.0% in Q2 (from 46.6% YoY) and was 47.5% for H1.

• Operating margin rose to 11.9% in Q2 and 12.9% in H1; net margin reached 8.6% in Q2 and 9.5% in H1.

• Cash and cash equivalents at period end: KRW 620.5bn.

• FILA Korea's gross margin rose to 66.0%, and operating margin to 20.1%.

• FILA USA turned gross profit positive but posted an operating loss of KRW 29bn.

Outlook and guidance

• 2024 consolidated revenue growth target remains -5% to +5% YoY, with operating profit expected to rise 3.9–40% at the mid-point.

• FILA USA expected to remain near break-even; FILA Korea guided for 0–10% revenue growth but operating loss.

• Royalty income projected to decline 10–20% YoY.

• Focus remains on premium brand positioning and global expansion.