Statutory Profit Doesn't Reflect How Good YG Plus' (KRX:037270) Earnings Are

Even though YG Plus, Inc.'s (KRX:037270) recent earnings release was robust, the market didn't seem to notice. Our analysis suggests that investors might be missing some promising details.

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The Impact Of Unusual Items On Profit

For anyone who wants to understand YG Plus' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by ₩4.1b due to unusual items. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. YG Plus took a rather significant hit from unusual items in the year to June 2025. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of YG Plus.

Our Take On YG Plus' Profit Performance

As we mentioned previously, the YG Plus' profit was hampered by unusual items in the last year. Based on this observation, we consider it possible that YG Plus' statutory profit actually understates its earnings potential! And the EPS is up 71% over the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 2 warning signs for YG Plus (1 can't be ignored) you should be familiar with.

Today we've zoomed in on a single data point to better understand the nature of YG Plus' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.