Kyobo Securities reported on August 14 that Dalba Global achieved its highest-ever quarterly performance in the second quarter, driven by strong overseas sales in North America, Europe, and Greater China. The firm maintained its target stock price at 310,000 won and its investment rating at 'Buy.'
Kwon Woo-jung, a researcher at Kyobo Securities, noted, "Despite temporary shortages of sunscreen containers and the impact of the war, the company recorded solid results that exceeded market expectations." He added that the increase in the proportion of business-to-business (B2B) transactions and operating profit margins in North America, Europe, and Greater China is also a positive sign.
Dalba Global's consolidated revenue for the second quarter reached 186.9 billion won, a 46% increase compared to the same period last year, while operating profit rose 62% to 47.2 billion won. The operating profit exceeded market forecasts by 16%, marking a record high. The results also included a customs refund effect of approximately 2 billion won.
However, due to rapidly rising market expectations ahead of the earnings announcement, the stock price fell by about 10% the previous day despite the strong performance.
Overseas sales surged 74% year-on-year to 141.5 billion won, with North American sales skyrocketing by 174% to 34.8 billion won. This growth was fueled by the effects of Amazon Prime Day and increased supply to U.S. cosmetics distributors Ulta Beauty and Costco.
Looking ahead to the third quarter, Kwon expects continued growth in North American sales compared to the previous quarter. He stated, "The rapid growth of TikTok Shop, the expansion of offline sales networks, and the diversification of key product lines will support this growth," adding that Europe is seeing the most active expansion of key products and offline sales networks in the global market.
Sales in Greater China reached 9.8 billion won, a 69% increase from the previous year. Kwon noted that sales on Tmall performed well during China's largest online shopping event, the '618 Festival,' and with the establishment of a Chinese subsidiary in the second quarter, both online and offline sales are expected to expand in the latter half of the year.
Meanwhile, domestic sales fell 4% year-on-year to 45.3 billion won, affected by the seasonal off-peak period and the shortage of sunscreen containers.
Kwon concluded, "Solid sales growth continues in North America, Europe, and Greater China," and he anticipates that simultaneous expansion of offline channels and key products in the U.S. will enable growth compared to the previous quarter, despite the absence of major events in the third quarter.
* This article has been translated by AI.
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