Title: P1252109397kvApC
12003 3Q Results
(unaudited)
This report has been prepared on an unaudited
basis and may be subject to changes.
2Sales
Due to seasonal factors, 3Q sales increased by 5
quarter-on-quarter to reach KRW 273bn. Sales
decreased year-on-year, however, given that the
recovery in domestic demand has yet to
materialize.
Quarter-on-Quarter
Year-on-Year
(KRW bn)
(KRW bn)
847.6
272.5
819.3
260.8
4.5
?3.3
292.0
272.5
?6.7
3Q
Jan.Sept.
3Q
Jan.Sept.
2003 2Q
2003 3Q
2002
2003
1 / 7
3Operating Income (Margin)
3Q operating income increased 53 q-o-q but
decreased 42 y-o-y, mainly due to fierce
competition, amounting to KRW 21bn.
Quarter-on-Quarter
Year-on-Year
(KRW bn)
(KRW bn)
95.4 (11.3)
21.3 (7.8)
59.9 (7.3)
?37.2
13.9 (5.3)
53.2
37.0 (12.7)
21.3 (7.8)
?42.4
3Q
3Q
Jan.Sept.
Jan.Sept.
2003 2Q
2003 3Q
2002
2003
2 / 7
4Household Products
In spite of the slowdown in the six major
products market and more intense competition, 3Q
sales and operating income increased q-o-q
largely as a result of seasonality.
Market Share
Sales Profit
()
(KRW bn)
19
2002
19
49
3Q
20
20
2002
2003
q-o-q
y-o-y
46
2003 1H
L G 47
Pacific 19
Aekyung 20
2003 (Jan.Sept.)
Toothpaste
Others
Sales Gross Profit (G.P. Margin) Operating
Income (O.P Margin)
17.1 29.9 (4.3P) 196.4 (7.4P)
200.0 86.4 (43.2) 24.6 (12.3)
201.6 86.5 (42.9) 28.7 (14.2)
?0.8 ?0.1 (0.3P) ?14.3 (?1.9P)
18
28
19
15
12
29
18
17
17
13
L G 30
PG 17
Unilever 17
Aekyung 13
Pacific 16
Shampoo
Others
37
16
14
10
36
16
11
16
37
16
16
9
L G 37
Pacific 16
CJ 11
Unilever 15
Soap
Others
37
27
22
35
25
23
y-o-y
2002
2003
Jan.Sept.
L G 36
L G 35
Aekyung 26
CJ 23
Laundry Detergent
Others
Sale Gross Profit (G.P. Margin) Operating
Income (O.P. Margin)
561.9 233.9 (41.6) 63.5 (11.3)
564.0 230.7 (40.9) 51.6 (9.1)
0.4 ?1.4 (?0.7P) ?18.7 (?2.2P)
44
33
15
42
32
17
L G 41
CJ 17
Aekyung 32
Kitchen Detergent
Others
31
49
15
30
49
??
16
31
50
14
L G 31
Pigeon 50
Oxy 13
Fabric Softener
Others
3 / 7
5Cosmetics
The ongoing downturn in the specialty shop and
new door-to-door channels and investment to
develop the premium channel led to weak
performance.
Sales by Channel
Sales Profit
(KRW bn, )
(KRW bn)
2002
2003
3Q
q-o-q
y-o-y
382.6
260.8
Sales Gross Profit (G.P. Margin) Operating
Income (O.P Margin)
Exports, Home Shopping, Online, etc.
?22.1 ?23.5 (?1.3P) - -
72.6 50.7 (69.8) ?3.3 -
93.6 66.5 (71.0) 6.7 (7.2)
?22.4 ?23.8 (?1.2P) - -
16
Others
14
24
26
Old New Door-to-door Department Store
Premium Market
62
58
y-o-y
2002
2003
Jan.Sept.
Discount Store Specialty Shop
Sale Gross Profit (G.P. Margin) Operating
Income (O.P. Margin)
?13.3 ?13.3 - ?72.2 (?7.0P)
259.1 184.5 (71.2) 8.3 (3.2)
298.9 212.9 (71.2) 30.4 (10.2)
Mass Market
2002 (Full Year)
2003 (Jan.Sept.)
4 / 7
6Financial Highlights
Although sales and profit recorded a decrease
y-o-y, debt-to-equity ratio has improved since
end-FY 02.
P/L Summary
P/L Summary
B/S Summary
(KRW bn)
(KRW bn)
2002
2003
FY 02
Jan.Sept.
03 3Q
847.6 406.2 441.4 346.0 95.4 92.4 64.9
819.3 406.2 413.1 353.2 59.9 58.7 41.3
Sales Cost of Sales Gross Profit SGA Operating
Income Recurring Profit Net Profit
Assets Fixed Liabilities Long-term Shareholders
Equity Debt-to-Equity Net Debt-to-Equity
678.1 435.4 406.9 79.1 271.2 150 53
684.7 411.0 402.1 61.6 282.6 142 48
47.9
49.6
52.1
50.4
43.1
40.8
7.3
11.3
Borrowings (Net Borrowings)
10.9
7.2
175.5
173.0
(144.8)
(135.8)
7.7
5.0
5 / 7
7Quarterly Results
(KRW bn)
2003 3Q q-o-q
2003 3Q y-o-y
3Q
2002 1Q
2Q
2003 1Q
2Q
3Q
Total
Sales Gross Profit Operating Income
4.5 4.1 53.2
?6.7 ?9.6 ?42.4
283.5 147.1 33.2
272.1 142.9 25.1
285.9 144.9 24.7
292.0 151.4 37.0
260.8 131.4 13.9
272.5 136.8 21.3
Household Products
17.1 29.9 196.4
?0.8 ?0.1 ?14.3
Sales Gross Profit Operating Income
185.5 75.5 20.3
174.8 71.9 14.5
193.2 77.8 18.7
201.6 86.5 28.7
170.8 66.5 8.3
200.0 86.4 24.6
Cosmetics
?22.4 ?23.8 -
?22.1 ?23.5 -
Sales Gross Profit Operating Income
104.7 73.8 13.0
100.6 72.6 10.7
93.4 67.5 5.9
93.6 66.5 6.7
93.2 66.3 5.7
72.6 50.7 ?3.3
6 / 7
8Thank you!
This presentation contains forward
looking statements which are based on
managements assumptions and estimates. The
forward looking statements involve certain risks
and uncertainties that could cause actual results
to differ materially from those contained in this
presentation. Potential risks and uncertainties
include, but are limited to, such factors as
general economic conditions, foreign exchange
fluctuations, and any change in the relevant laws
and regulations.
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