[Edaily Reporter kyoungeun kim ] #d'Alba Global is expected to post second-quarter earnings in line with market consensus, driven by step-wise growth in sales in Western markets such as Europe and North America.
Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated on the 8th regarding d'Alba Global, “Sales in Western markets are showing a step-by-step upward trend, while other regions are also demonstrating balanced growth,” and announced that she is maintaining a ‘Buy’ rating and a target price of 300,000 won.
She added, “The proportion of high-margin business-to-business (B2B) sales is also gradually increasing, strengthening the company’s profit resilience,” and concluded, “Given the relatively high revenue growth rate and the proportion of overseas sales within the industry, increasing the weighting of this stock in a portfolio is a sound strategy.”
Analyst Jeong stated, “Second-quarter consolidated revenue is expected to reach 183.5 billion won, a 43% increase year-over-year, while operating profit is projected to rise 44% to 42.2 billion won, in line with consensus estimates.”
Regarding revenue and growth rates by country (year-over-year), he noted, “Japan: 36.4 billion won (+41%), North America: 26.6 billion won (+110%), Europe 19 billion won (+216%), ASEAN 20 billion won (+79%), South Korea 51 billion won (+8%), Russia 20.9 billion won (+12%), Greater China 7.1 billion won (+23%), and Others 2.5 billion won (+122%)." He added, “We expect to achieve an operating profit margin of around 23% thanks to increased high-margin B2B sales in the second quarter and more efficient marketing in e-commerce channels in Japan and North America.”
Analyst Jeong stated, “During Amazon Prime Day at the end of June, our First Spray Serum, Multi Balm, and sunscreen products gained a firm foothold in the skincare categories on Amazon in Spain and Germany,” adding, “The First Spray Serum also maintains stable rankings in the UK, France, and Italy.” He continued, “In North America, e-commerce sales momentum centered on TikTok Shop and Amazon is improving, and reorder volumes of 8 billion won from Ulta Beauty and Costco are contributing to margins.”