"Clio: Overseas Sales Expected to Exceed 50% This Year"

[Asia Economy Reporter Park Soyeon] Hana Securities has issued a buy rating on Clio, stating that "high brand power and a diverse portfolio have secured earnings visibility."

According to FN Guide on the 16th, Hana Securities mentioned in a recent report that "Clio's sales in Japan, which were around 20 billion KRW in 2019, rapidly grew to 35.3 billion KRW in 2020 and 46 billion KRW in 2021," adding that "the proportion of sales from Japan accounts for 17%."

Clio has introduced not only its main brands Clio and Peripera but also Gudal and Healing Bird to the market, and is expanding its distribution channels through home shopping. Currently, it sells through over 4,000 drugstores, home shopping, and e-commerce platforms.

In particular, it is strengthening its partnership with Olive Young domestically. Currently, five brands are stocked at Olive Young. Overseas, sales in the United States (Amazon) and Southeast Asia are experiencing high growth. Park Jongdae, a researcher at Hana Securities, said, "Although sales in Japan were somewhat sluggish in the first half due to the weak yen and product renewals, this is expected to gradually ease," and added, "The proportion of overseas sales is expected to exceed 50% in 2022."

He also forecasted consolidated sales of 144.8 billion KRW and operating profit of 8.3 billion KRW for the second half. Major events such as the Olive Young Power Pack and the US Black Friday are scheduled, so sales growth is expected to be prominent. Researcher Park said, "Expansion of the US business is especially anticipated," but noted that since the focus in the second half is on external growth rather than profitability, the operating profit margin is expected to decrease by 2 percentage points from the same period last year to 6%.