Dalba Global's shares have surged over 8% during trading. The company has outlined its long-term growth strategy and performance targets, drawing attention from analysts to its potential for growth through the expansion of its global distribution network.
As of 1:21 PM on October 16, Dalba Global's stock was trading at 171,500 won, up 12,800 won (8.07%) from the previous trading day. The stock opened at 160,200 won and reached a high of 173,100 won during the session.
Park Hyun-jin, a researcher at Shinhan Investment Corp., noted in a recent report that during an analyst meeting, CEO Ban Seong-yeon presented the long-term growth strategy for the Dalba brand. He explained that the company aims to strengthen its existing brand competitiveness and expand its global offline distribution network to establish a foundation for long-term growth.
The company has set a revenue target of 725 billion won and an operating profit margin target of 21% for 2026. Park stated, "Based on the seasonal average revenue growth rate of 36% over the past two years in the fourth quarter, we expect external growth and aim to maintain the operating profit margin at the level of the third quarter."
He also highlighted that the main growth strategies focus on enhancing the product competitiveness of the existing Dalba brand and expanding its global offline distribution network. This includes plans to increase its presence in 650 Costco locations in the U.S., add more stock-keeping units (SKUs) for Ulta, and expand into European drugstores and Watsons in Asia.
However, currency exchange rates and the contribution of new distribution channels to performance were identified as variables. Park remarked, "There is a burden on revenue conversion due to the decline in major currency exchange rates in the third quarter, and adjustments to performance estimates may be necessary in the fourth quarter depending on exchange rate levels. The actual revenue contribution from new global entries and the expansion of SKUs and order sizes in existing channels, along with improvements in marketing efficiency, will be crucial for maintaining profitability."
* This article has been translated by AI.
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