<EcoMarketing, Expecting Recovery in Core Business Growth Potential>

Published 10 Apr.2022 22:48(KST)

[Asia Economy Reporter Hyungsoo Park] Hana Financial Investment analyzed that Eco Marketing's Q1 performance this year met market expectations.

Researcher Kihoon Lee of Hana Financial Investment stated, "It is estimated that sales reached 69.5 billion KRW and operating profit 11 billion KRW in Q1," adding, "This represents an increase of 60% and 41%, respectively, compared to the same period last year."

He continued, "The accounting treatment for Daily&Co's consignment business with Andar changed to net sales from Q4 last year," explaining, "The simultaneous removal of Daily&Co sales and advertising expenses related to Andar has no impact on operating profit."

He said, "On a separate basis, operating profit is 5.2 billion KRW, showing growth through the normalization of Andar and efforts to secure clients," adding, "Daily&Co is also growing with Mongje and Titad."

Furthermore, he emphasized, "The newly launched stretching massager from Cluck is expected to contribute to sales starting from Q2 this year," and "Despite being an off-season, Andar is expected to achieve sales around 30 billion KRW."

The researcher explained, "Due to manpower and marketing investments for Andar's normalization, existing clients decreased, and related CPS sales losses led to poor performance," adding, "From a corporate value perspective, it was an unfortunate trend where digital marketing profits were damaged to save the apparel business."

He expressed hope, "This year, with the reduction of CPS losses following Andar's normalization, Eco Marketing will return to its former state."