"Performance Improvement Starts Now"... Classys Expected from Q2

[Asia Economy Reporter Yoo Hyun-seok] Securities firms are analyzing that Classys' profit momentum will strengthen from the second quarter.

According to the financial investment industry on the 2nd, Classys recorded sales of 21.6 billion KRW and operating profit of 12 billion KRW in the first quarter. Compared to the same period last year, sales increased by 1%, but operating profit decreased by 11%. Kim Dong-ha, a researcher at Hanwha Investment & Securities, said, "Despite the slow recovery of domestic demand due to the prolonged impact of COVID-19, export growth (excluding Brazil) is expected to have a greater effect through deferred demand, leading to external growth for the first time in three quarters," adding, "Profitability is expected to slightly decline due to the strong Korean won and some cost increases (advertising expenses, depreciation, etc.)."

In particular, profit momentum is expected to strengthen from the second quarter. He explained, "With the global expansion of COVID-19 vaccinations, domestic demand is expected to benefit from advertising effects, the Shrink Universe replacement demand in the second half, and the launch of Voluumer," and "Regarding exports, considering the base effect and the possibility of demand recovery in Brazil, continued growth is expected."

Hanwha Investment & Securities forecast that Classys' sales and operating profit for this year will increase by 26% and 28% respectively from the previous year, reaching 96 billion KRW and 52 billion KRW. He emphasized, "In the mid to long term, the high growth potential of exports is expected to be highlighted due to aging, technological advancement, and increased awareness of aesthetic medicine," and "The acceleration of growth in emerging countries where Classys has strengths (increased disposable income, improved perception of aesthetics) is a positive factor."

This content was produced with the assistance of AI translation services.