Sales at 264.5 Billion KRW... Down 3.3% Year-on-Year
"Overseas Market Growth and Shift to High-Profit Structure" Drive Results
Performance Improved Through Diversification of Distribution Channels
Able C&C announced on the 12th that its operating profit last year was 20.3 billion KRW, a 1.8-fold increase compared to the previous year. During the same period, sales amounted to 264.5 billion KRW, a 3.3% decrease from the previous year.
Able C&C explained that it achieved qualitative growth as a result of continuously strengthening its core business competitiveness while balancing profitability and growth. The operating profit margin improved from 4.2% in the previous year to 7.7%. Operating profit has sharply increased over the past five years.
Responding to high exchange rates and changes in tourism trends, diversifying into more profitable channels had a positive effect. Although sales slightly decreased compared to the previous year, growth in overseas markets and a shift to a high-profit structure led to an overall increase in profitability.
In particular, growth in overseas markets was remarkable. The European market recorded an explosive sales increase of 62.6% compared to the previous year. The Middle East and other Asian regions also saw a 23.8% increase in sales. The Japan subsidiary solidified existing offline channels such as drugstores and variety shops while pioneering new distribution networks like Costco and QVC. As a result, local sales excluding the yen depreciation effect grew by 4.1%, maintaining a steady upward trend. The China subsidiary expanded online channels and strengthened influencer (Wanghong) marketing, achieving 11.6% growth and turning profitable. As of last year, Able C&C’s overseas sales accounted for 56.4% of total sales.
In the domestic market, diversification of distribution channels using new H&B channels and beauty vertical platforms contributed to performance improvement. Major domestic H&B channels recorded a 103% increase in sales compared to the previous year, continuing the growth trend. Especially, sales in the channel surged 546% year-on-year due to the effect of exclusive product launches in collaboration with Daiso. Sales on platforms such as Musinsa and Abley increased more than sixfold.
Able C&C plans to establish a long-term growth foundation by expanding exports focused on high-efficiency channels and pursuing profitability enhancement strategies. An Able C&C official stated, "Able C&C is continuously strengthening competitiveness in both global and domestic markets through qualitative growth based on profitability. We will solidify a long-term growth foundation by optimizing brand portfolios by country and actively utilizing various new distribution channels."
Meanwhile, Able C&C held a board meeting on the same day and resolved a cash year-end dividend of 204 KRW per share. The dividend yield is 3.0%, and the dividend record date is March 31.
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