Business · Companies · 3 hrs ago
APR profit margin hit by strong won as overseas growth continues
South Korean company APR reported strong third-quarter sales growth, with revenue more than doubling from a year earlier.
Operating profit also rose by about 67%, but it came in roughly 11% below market forecasts.
A stronger won reduced the value of APR’s overseas earnings when converted into Korean currency and caused losses on foreign-currency receivables.
Exports make up 94% of APR’s sales, so exchange-rate changes can have a large effect on its reported results.
Analysts say overseas growth remains firm, with APR expanding sales through online and physical stores in the US and growing online sales in Europe.
They expect holiday shopping and wider store sales to lift fourth-quarter revenue, although a stronger won and higher shipping costs could limit profit margins.
Several securities firms cut their price targets for APR but kept their “buy” ratings; one analyst expects the company to set a new quarterly sales record.
APR’s third-quarter operating profit margin fell to 20.8% as a stronger won reduced the value of overseas sales and caused losses on foreign-currency receivables.
Revenue rose 100.3% from a year earlier to 773.1 billion won, while operating profit increased about 67% to 160.6 billion won.
Operating profit was about 11% below market forecasts, and the margin was down 3.6 percentage points from the previous quarter.
Securities analysts said overseas growth, particularly in the United States and Europe, continued despite the currency-related pressure.
Analysts expect year-end shopping events and wider offline distribution to support fourth-quarter sales, while some cautioned that profitability may recover slowly.
- Who
- APR, a South Korean company, and securities analysts assessing its results.
- What
- APR’s third-quarter operating margin fell short of expectations amid a stronger won, while overseas growth continued.
- When
- In the third quarter of 2026; analysts issued assessments on November 2.
- Where
- South Korea, with overseas growth focused on the United States and Europe.
- Why
- The stronger won reduced the won value of overseas revenue and led to valuation losses on foreign-currency receivables.
This story does not have two clearly opposing sides.
APR recorded revenue of 773.1 billion won and operating profit of 160.6 billion won.
KB Securities published a report attributing the earnings shortfall mainly to the sharp exchange-rate decline.
Analysts forecast that year-end shopping events and expanded offline distribution would support sales, while cautioning that profitability could remain under pressure.
- Third-quarter revenue
- 773.1 billion won, up 100.3% year on year
- Third-quarter operating profit
- 160.6 billion won, up about 67% year on year
- Operating profit margin
- 20.8%, down 3.6 percentage points from the previous quarter
- Export share
- 94%
- Analyst price targets
- Samsung Securities and DB Securities: 400,000 won; KB Securities: 450,000 won; Kiwoom Securities: 460,000 won; LS Securities: 500,000 won
- APR closing share price
- 261,000 won at the previous trading session’s close
1 source
What people are saying
The biggest factor behind the earnings shortfall was the sharply fallen exchange rate.
Uncertainty in earnings due to exchange rate fluctuations is inevitable for the time being, but the direction of expanding penetration in global markets and diversifying the business remains positive.
Through the year-end peak season effects, including Amazon’s November Black Friday and China’s Singles’ Day, APR will again set a record for its highest quarterly results in the fourth quarter.
Considering the strong won and the burden of shipping costs in response to rising demand in Europe, it is advisable to take a conservative view of fourth-quarter profitability.