1. What Happened?

Bbia recorded revenue of KRW 17.4 billion in H1 2025, a robust 26.3% increase year-over-year. However, operating profit decreased to KRW 100 million, and net income turned negative to KRW -100 million. Despite revenue growth, profitability has worsened.

2. Why These Results?

Revenue growth was driven by balanced growth across lip, eye, and base makeup products. The marketing strategy targeting Gen Z appears to have been effective. Conversely, the decline in operating profit is primarily attributed to increased selling, general, and administrative expenses, specifically a surge in advertising and promotion costs due to aggressive marketing. Additionally, KRW 10 billion in contingent liabilities recognized due to a lawsuit involving the former CEO negatively impacted net income.

3. What’s Next?

Bbia is securing growth momentum through its four-brand portfolio and overseas market expansion strategy. However, the declining profitability trend and uncertainty surrounding the lawsuit pose investment risks.

4. What Action Should Investors Take?

Bbia’s mid-to-long-term growth potential remains valid, but investors should closely monitor short-term profitability improvements and the outcome of the lawsuit. It is advisable to review investment strategies based on future quarterly earnings announcements and the progress of the lawsuit.