[Click e-Stock] "APR Expected to Exceed Q2 Earnings Expectations"

On July 3, Kiwoom Securities stated that APR is expected to deliver second-quarter results surpassing market expectations, driven by strong performance in global B2B as well as U.S. and Japanese channels.

Jo Sojeong, a researcher at Kiwoom Securities, analyzed, "Second-quarter sales are projected at 315.8 billion won (up 103% year-on-year), and operating profit at 62 billion won (up 77% year-on-year), both expected to exceed market expectations. Overseas channels are leading the growth, with global B2B, U.S., and Japanese channels standing out in particular."

While domestic business sales are expected to decrease slightly to 76 billion won (down 3% year-on-year), overseas business sales are forecast to surge to 239.8 billion won (up 211% year-on-year). The global B2B channel is likely to maintain a high growth rate due to an increase in the number of countries and channels entered, and rising demand for popular products in Europe is also having a positive impact.

Jo added, "As in the first quarter, the U.S., Japan, and global B2B channels will continue to drive growth. We expect year-on-year growth rates by channel to be: global B2B +409%, U.S. +266%, and Japan +225%."

In the U.S. market, products such as Zero Pad, Collagen Pack, and Vita C Cream are leading growth, especially through the Amazon channel, and seasonality is gradually weakening. In Japan, robust online event performance and expansion of offline channels are expected to result in strong growth.

APR's full-year outlook for this year has also been revised upward. Jo stated, "We are raising this year's estimates to sales of 1.3158 trillion won (up 82% year-on-year) and operating profit of 249.7 billion won (up 104% year-on-year)." In particular, Japan is expected to reach 3,000 stores by the end of the year, and the U.S. is set to complete entry into 1,400 Ulta Beauty stores by August. Positive consumer response online is expected to translate into offline purchases, supporting continued significant top-line growth.

Jo explained, "The global B2B, U.S., and Japanese channels, which drove growth in the first half, are expected to remain key growth drivers in the second half. Among these, the global B2B channel may see quarterly growth rates moderate somewhat from the second half due to the increase in the number of countries entered since last year. However, the Japanese and U.S. channels are expected to see even steeper growth based on online growth momentum and expansion of offline distribution networks."