1. Interojo Q1 2025 Performance: The Numbers

Interojo’s Q1 2025 consolidated revenue was 23.1 billion KRW, a 31.2% decrease year-over-year. Operating profit and net income also declined significantly, by 60.6% and 62.4% respectively. The primary causes are slowing demand in European and Asian markets and intensified competition in China.

2. Reasons for the Decline: Why Did This Happen?

The global economic slowdown, resulting in decreased demand for contact lenses, and increased competition from local Chinese companies significantly impacted Interojo’s performance. The company’s high reliance on overseas sales made it particularly vulnerable to the global downturn. Continued pressure on SG&A expenses and a slowdown in inventory turnover also contributed to the decline in profitability.

3. Positive Factors and Future Growth Drivers: What’s Next?

  • Improved Financial Structure: Increased current assets and reduced debt have partially improved Interojo’s financial health.
  • Smart Lens Business Spin-off: The establishment of Optroth Co., Ltd., focused on smart lenses, aims to secure a long-term growth engine.
  • Large Shareholding Report: While there were no changes in shareholding, the continued mention of “influence on management rights” warrants attention.

4. Investor Action Plan: What Should You Do?

The current investment recommendation for Interojo is ‘Neutral’. While the short-term decline in performance is a negative factor, the improved financial structure and smart lens business spin-off suggest long-term growth potential. Investors should closely monitor future earnings recovery, the performance of the smart lens business, and changes in the competitive landscape.