Carote Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Carote (HKG:2549) Full Year 2024 Results

Key Financial Results

• Revenue: CN¥2.07b (up 31% from FY 2023).
• Net income: CN¥356.0m (up 50% from FY 2023).
• Profit margin: 17% (up from 15% in FY 2023). The increase in margin was driven by higher revenue.
• EPS: CN¥0.81 (up from CN¥0.59 in FY 2023).

Our free stock report includes 1 warning sign investors should be aware of before investing in Carote. Read for free now.

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

Carote EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) exceeded analyst estimates by 17%.

The primary driver behind last 12 months revenue was the Branded Business segment contributing a total revenue of CN¥1.86b (90% of total revenue). Notably, cost of sales worth CN¥1.24b amounted to 60% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥375.5m (78% of total expenses). Explore how 2549's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Consumer Durables industry in Hong Kong.

Performance of the Hong Kong Consumer Durables industry.

The company's shares are up 11% from a week ago.

Risk Analysis

Before we wrap up, we've discovered 1 warning sign for Carote that you should be aware of.

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