1. What Happened? d’Alba Global’s H1 2025 Earnings Analysis
d’Alba Global released its preliminary H1 2025 earnings on August 14, 2025. Revenue reached 128.3 billion KRW, in line with market consensus, but operating profit was 29.2 billion KRW (vs. expected 35.8 billion KRW, -18%) and net income was 19.8 billion KRW (vs. expected 26.5 billion KRW, -25%), significantly missing expectations.
2. Why Did This Happen? Analyzing the Earnings Miss
The decline in operating profit and net income is likely due to higher-than-expected expenses. Investments in new businesses, increased marketing costs, and overseas subsidiary operating expenses appear to have pressured profitability. This is supported by the semi-annual report showing substantial year-on-year sales growth but slower operating profit growth.
3. What’s Next? Investment Strategies
A conservative investment approach is warranted in the short term, considering potential stock price volatility. However, the steady growth of the cosmetics business and the potential of new businesses offer a positive long-term outlook. Investors should carefully consider the following:
- • Cost structure efficiency and improvement
- • Growth and market share expansion of new businesses (inner beauty, home beauty devices)
- • Exchange rate volatility management strategy and its effectiveness
4. Action Plan for Investors
Before making investment decisions, minimize risks and identify opportunities by conducting further analysis:
- • Analyze the final 2025 annual earnings announcement and compare it with preliminary results.
- • Examine details of non-operating expenses.
- • Analyze sales volume and profitability trends by overseas market.
- • Check market share and marketing performance of new businesses.
- • Review the hedging strategy for exchange rate fluctuations and its effectiveness.