Misto Holdings (081660) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 1,049bn, up 6.0% year-over-year, driven by strong demand in Korea and China, and robust Acushnet performance.

• Operating profit was KRW 93bn, a 0.9% increase year-over-year, with adjusted profit benefiting from cost reductions and excluding a one-off KRW 18bn expense.

• Net income for Q3 was KRW 53bn, down 7.6% year-over-year, but nine-month net income rose 30% to KRW 277bn.

• Titleist maintained over 70% global tour market share in golf balls, and FILA's "Echappe Choco" footwear drove strong brand engagement in Korea.

• FILA reaffirmed its full-year revenue outlook, expecting consolidated growth between -5% and +5%.

Financial highlights

• Consolidated gross profit increased 15.8% year-over-year to KRW 567bn, with gross margin improving to 54.0%.

• Acushnet revenue grew 8.4% year-over-year to KRW 844bn, with operating profit up 10.7%.

• FILA USA revenue declined 18.8% year-over-year, but gross profit surged 186.6% due to reduced promotions and inventory.

• FILA Korea revenue rose 5.1% year-over-year, with operating profit up 32.6% on strong footwear sales and higher design service fee income.

• Global royalty income fell 5.2% year-over-year, mainly due to declines in Asia and North America.

Outlook and guidance

• Consolidated and segment revenue guidance for 2024 remains at -5% to +5% year-over-year.

• Adjusted consolidated operating profit outlook excludes the KRW 18bn one-off restructuring expense.

• Acushnet expects FY2024 adjusted EBITDA growth of 5.0% at the mid-point.

• Currency assumptions updated to reflect a stronger USD/KRW exchange rate of 1,352.14.