[Edaily Reporter Kim Kyung-eun ] On the 14th, KB Securities raised its target price for #d'Alba Global by 7.4% from 270,000 won to 290,000 won, citing continued growth in new regions. The firm maintained its “Buy” rating.

Son Min-young, an analyst at KB Securities, stated in a report released that day, “We note that the proportion of business-to-business (B2B) sales expanded to 39% in the second quarter, supporting regional growth while reducing profit volatility, and that new markets such as Greater China, India, and Australia are also growing rapidly.”

d'Alba Global’s consolidated revenue for the second quarter reached 186.9 billion won, a 45.6% increase year-over-year. Operating profit rose 61.6% to 47.2 billion won, and the operating profit margin improved by 2.5 percentage points to 25.3%. Profitability improvements were driven by revenue growth and marketing cost leverage resulting from the expansion of B2B operations. Even after accounting for approximately 2 billion won in U.S. tariff costs, operating profit exceeded the market consensus by 14.5%.

North America and Europe, in particular, drove earnings growth. Revenue in North America increased by 175% year-over-year. Revenue in Europe rose by 240%. Online sales surged significantly due to the Amazon Prime Day effect. In North America, approximately 8 billion won in reorder volumes from Costco and Alta were also reflected.

ASEAN, Greater China, and other regions also maintained strong growth momentum. Revenue in ASEAN rose by 99%. Revenue in Greater China increased by 70%. Revenue in other regions surged by 448%.

In contrast, growth in traditional key markets such as Japan and Russia slowed. Sales in Japan decreased by 2.2% compared to the previous quarter. This was influenced by a slowdown in growth at Qoo10—a key channel for K-Beauty—and base effects following the first-quarter peak season.

Revenue in Russia and South Korea decreased by 34.3% and 4.0%, respectively. This was due to a shortage of sunscreen inventory caused by supply chain disruptions for PP containers, which prevented the company from fully meeting demand. In Russia, 3 billion won of the planned 7 billion won in Gold Apple-scented product shipments was deferred to the third quarter.

Analyst Son stated, “The stock price fell by about 10% following the earnings announcement,” adding, “We believe this reflects the slowdown in growth rates in existing key markets such as Japan and Russia, as well as the possibility of a decline in third-quarter earnings.”

However, the expansion of the B2B segment is seen as a factor that reduces earnings volatility. The B2B share in the second quarter rose to 39%, up 4 percentage points from the previous quarter. Analysts note that the expansion of the B2B segment is supporting growth across regions while simultaneously reducing profit volatility.