GS Construction's Operating Profit Last Year 765.9 Billion KRW... 28.1% Decrease YoY

[Asia Economy Reporter Choi Dong-hyun] GS Construction announced on the 31st that its consolidated operating profit for last year was tentatively estimated at 765.9 billion KRW, a 28.05% decrease compared to the previous year.

Sales amounted to 10.4164 trillion KRW, down 20.72% from the previous year. Net profit decreased by 23.2% to 451.1 billion KRW.

The decline in sales was due to a reduction in overseas sales as major overseas plant sites entered their final stages. Domestic and overseas sales were 7.34 trillion KRW and 3.076 trillion KRW, respectively. However, last year's gross profit margin rose to 13.4% compared to 12.4% in 2018. This was because the gross profit margin in the architecture and housing sector improved to 16.3%, and the plant sector also showed a solid profit margin of 10.1%.

The operating profit margin was recorded at 7.4%. Considering that it was 7.1% excluding the one-time overseas project refund of 120 billion KRW in the first quarter of 2018, this performance was relatively strong. GS Construction stated, "Last year's operating profit margin is a favorable indicator, and the profit structure has stabilized."

Looking at the fourth quarter of last year alone, sales were 2.798 trillion KRW, operating profit was 181 billion KRW, and new orders amounted to 3.444 trillion KRW. The debt ratio fell from 232% at the end of 2018 to 217% at the end of last year.

Meanwhile, GS Construction set both sales and orders at 11.5 trillion KRW as its management goals for this year. A GS Construction official said, "This year, we plan to further strengthen the competitiveness of our core businesses such as housing construction and plants, while actively promoting new businesses to prepare future growth engines. We will grow into a leading sustainable company in Korea through stable profit generation and proactive investment for the future."

This content was produced with the assistance of AI translation services.