Beauty Farm Medical and Health Industry Full Year 2024 Earnings: EPS Misses Expectations

Beauty Farm Medical and Health Industry (HKG:2373) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥2.57b (up 20% from FY 2023).
• Net income: CN¥228.5m (up 5.9% from FY 2023).
• Profit margin: 8.9% (down from 10% in FY 2023). The decrease in margin was driven by higher expenses.
• EPS: CN¥0.99 (up from CN¥0.94 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Beauty Farm Medical and Health Industry EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 3.6%.

The primary driver behind last 12 months revenue was the Beauty and Wellness Services - Direct Stores segment contributing a total revenue of CN¥1.31b (51% of total revenue). Notably, cost of sales worth CN¥1.38b amounted to 54% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥461.7m (48% of total expenses). Explore how 2373's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Consumer Services industry in Hong Kong.

Performance of the Hong Kong Consumer Services industry.

The company's share price is broadly unchanged from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We have a graphic representation of Beauty Farm Medical and Health Industry's balance sheet and an in-depth analysis of the company's financial position.

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