DB Securities said on the 13th that growth in North America and Europe drove d'Alba Global's first-quarter results. It kept its investment opinion at "Buy" and raised the target price to 300,000 won from 220,000 won. d'Alba Global's closing price in the previous trading day was 247,000 won.
Heo Jena, an analyst at DB Securities, analyzed d'Alba Global's first-quarter results by saying, "Sales growth in Japan, North America, and Europe stood out, and the reduction in marketing expense spending as the frequency of global promotions decreased compared with the fourth quarter was the main factor in operating profit beating estimates."
d'Alba Global posted consolidated first-quarter revenue of 171.2 billion won and operating profit of 45.1 billion won. Revenue rose 50.5% from a year earlier, and operating profit increased 50%. Operating profit far exceeded the market consensus of 40 billion won.
By country, Japan, which accounts for the largest share, increased 67% from a year earlier, maintaining solid growth. In particular, sales growth in Western countries such as North America and Europe surged 193% and 254%, respectively, from a year earlier.
Heo said, "There were meaningful levels of reorders at large channels such as Costco and Ulta, where placements began late last year," adding, "It is positive that new customer inflows are increasing as brand awareness expands online."
Amid this, quarterly U.S. sales are expected to rise as the number of stores and additional stock keeping unit (SKU) placements expand. In Europe, the company is seeking to diversify sales with the multi-balm, tone-up sunscreen, and double cream. By country, Germany, Spain, Italy, and the United Kingdom account for 80% of European sales.
Heo said, "New channel placements by country are planned sequentially during the first half," adding, "The uptrend in sales is expected to continue into the second half."