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DEEP RESEARCH · INBODY

InBody 2024 Q1 Quarterly Report Review

A report-style review of earnings, balance sheet, cash flow, and regional sales from the Q1 filing

Published: 2024-05-24 · Quarterly report review · Original Naver Blog post

You are responsible for your own investment decisions. This material is research and is not a buy or sell recommendation.

0. Bottom Line First

For InBody's 2024 Q1, revenue appears to be moving well, while operating profit was partly down year over year. Subsidiary investment and simultaneous increases in receivables and payables are the items that stand out. Regional sales totaled 48,429,417 thousand won in Q1 versus 43,026,999 thousand won in the previous quarter.

I waited for Friday and reviewed InBody's 2024 Q1 quarterly report right after work. The analysis tool used was https://www.butler.works.

Q1 Review FrameFour lenses used in the report
P&LRevenue moving well, profit partly lower
Balance SheetSubsidiary investment and claims growth
Cash FlowInvestment impact, no unusual issue
Regional SalesChina rising again, Asia separated
The next watch point is whether LB Trainer and India subsidiary sales are separated in the second half.

1. Earnings: Revenue Moving Well, Profit Partly Lower

Official fact: The original review's first judgment was: revenue is moving well, while operating profit was partly down year over year.

Interpretation: The revenue direction does not look bad, but I need to keep watching how subsidiary investment and higher costs flow through profit.

InBody 2024 Q1 earnings section screenshot

2. Balance Sheet: Subsidiary Investment and Claims Growth

On the balance-sheet side, subsidiary investments continue, while receivables and payables are rising at the same time.

  • Subsidiary investment: Continued investment in Kort and InBody BWA, the North American sales subsidiary, is expected to reduce net income.
  • Claims growth: Trade payables and trade receivables are both increasing. Cash turnover does not look abnormal, but the reason for the increase remains a question.
InBody subsidiary investment and balance-sheet screenshot InBody receivables and payables screenshot

3. Cash Flow: Investment Impact, No Unusual Issue

Official fact: Cash flow declined partly due to subsidiary investment, but the original review did not identify an unusual issue.

Interpretation: For now, the bigger watch points are whether the investments lead to sales growth and whether claims growth impairs turnover.

InBody 2024 Q1 cash-flow screenshot

4. Regional Sales: 2024 Q1

The following table shows regional sales for 2024 Q1. Unit: thousand won.

RegionCurrent quarterPrevious quarter
Korea9,568,6509,560,176
U.S.14,166,73112,874,987
Mexico2,021,1411,318,165
Europe6,182,9554,915,898
Japan5,012,1005,673,022
China4,215,6853,888,750
Asia3,659,4372,540,576
Latin America2,183,5741,495,887
Middle East/Africa1,419,144759,538
Total48,429,41743,026,999
Total

48,429,417 thousand won

Up from 43,026,999 thousand won in the previous quarter.

U.S.

14,166,731 thousand won

Higher than 12,874,987 thousand won in the previous quarter.

China

4,215,685 thousand won

Started rising again after 3,888,750 thousand won in the previous quarter.

Asia

3,659,437 thousand won

Increased from 2,540,576 thousand won, and Asia was separated as its own line item.

5. Regional Sales from the 2023 Annual Report

For comparison, I also looked at regional sales from the 2023 annual report. Unit: thousand won.

RegionCurrent yearPrevious year
Korea37,334,44038,235,560
U.S.52,422,31545,564,932
Mexico6,286,8434,149,366
EU21,626,05720,121,021
Japan18,243,56018,185,738
China13,716,86813,387,569
Latin America7,003,4136,348,246
Asia/Middle East/Africa13,717,73414,011,342
Total170,351,230160,003,774

Interpretation: China has started to increase again, and Asia being broken out separately is notable. In the second half, I will wait to see when LB Trainer and India subsidiary sales are separated.