[Click eStock] "Manyo Factory Records Highest Quarterly Sales"

Hana Securities announced on the 19th that Manyeogongjang recorded its highest sales in the second quarter of this year, with overseas sales exceeding 20 billion KRW per quarter.

This surpassed Hana Securities' estimates (sales of 34 billion KRW, operating profit of 6.6 billion KRW) by 8% and 26%, respectively. The factors behind the better-than-expected performance were higher-than-anticipated domestic profitability and overseas exports, mainly to the United States, exceeding expectations. In particular, overseas sales exceeded 20 billion KRW per quarter, leading to a sharper improvement in profitability. Manyeogongjang is focusing on overseas expansion this year, and growth centered on overseas markets is expected.

Domestically, sales reached 15.9 billion KRW and operating profit 3 billion KRW. Online sales were 8.7 billion KRW, up 47% year-on-year, and offline sales were 7.2 billion KRW, growing 20% compared to the previous year. 80% of offline sales came from Olive Young, with sales growing 22% year-on-year. Online sales were particularly strong, with noticeable growth effects from participation in the Nego Wang campaign. The domestic segment achieved an operating profit margin of 19%, improving profitability. Marketing costs for Nego Wang were fully recognized in the first quarter, product mix improved, and SG&A efficiency improved due to scale expansion, all cited as factors for profitability improvement.

Overseas sales recorded 20.7 billion KRW with an operating profit of 5.4 billion KRW. Sales in the United States grew more than fourfold year-on-year. Both online and offline channels showed strong performance. Manyeogongjang secured a solid reputation by ranking among the best sellers in the Amazon cleansing category, and sales increased further due to new offline store openings. In the third quarter, shipments were made to Costco and Ulta. At Costco, Pure Cleansing Oil was launched in 300 stores, and Ulta released nine products both online and offline (600 stores). Especially, Costco shipments were identified as significant. Sales in Japan decreased by 17% year-on-year, mainly due to reduced online promotions. Offline sales per store showed an increasing trend. Manyeogongjang entered 1,000 stores, with additional store openings planned for the second half of the year.

Researchers Eunjeong Park and Dahye Kim of Hana Securities said, "With expanding domestic and overseas market shares, a simultaneous increase in Manyeogongjang’s corporate value is expected."