LocknLock Q2 Sales Reach 118.1 Billion KRW... Operating Profit Up 17% Year-on-Year

Lock&Lock's Pengsoo Water Bottle Series. Photo by Lock&Lock

[Asia Economy Reporter Moon Hyewon] Lock&Lock announced on the 3rd that its consolidated sales for the second quarter of this year reached 118.1 billion KRW, with an operating profit of 4.6 billion KRW.

Sales increased by 6.9% compared to the same period last year, and operating profit rose by 17%. Compared to the first quarter of this year, sales and operating profit increased by 17.9% and 477.2%, respectively. A Lock&Lock official explained, "This is thanks to our channel strategy that responded quickly and proactively despite the impact of the novel coronavirus infection (COVID-19)."

Since early last year, Lock&Lock has set four main categories: food storage containers, beverage containers (Beverage Air), kitchenware (Cookware), and small home appliances, and is implementing a lifestyle company strategy based on these. Focusing on the rapidly growing online market, the company has reorganized its sales channels centered on online since 2014.

Among categories such as small home appliances, cookware, and food storage containers, sterilization appliances like toothbrush sterilizers and knife cutting board sterilization blocks received particular attention. Sales of small home appliances in the second quarter increased by 112% compared to the same period last year.

Due to the impact of COVID-19, demand for home-cooked meals increased, leading to sales growth of 32% and 5% in cookware and food storage containers, respectively, compared to the second quarter of last year.

With the expansion of the untact (contactless) trend, performance in online channels was notably strong. Sales generated from all online channels rose by 26% compared to the same period last year. Compared to the first quarter of this year, it increased by more than 37%. In home shopping, targeting consumer needs with new products in food storage containers, cookware, and small home appliances led to sales growth of over 12% compared to the first quarter of last year.

By region, all major markets accounting for more than 70% of sales, including China, Korea, and Vietnam, achieved positive results.

China, Lock&Lock's largest market, showed continuous recovery since February this year and recorded a turnaround in the second quarter. Sales increased by 4% compared to the same period last year, with double-digit growth of 15% achieved in June.

Vietnam also saw second-quarter sales increase by 11%, driven by online channels and small home appliances. Online sales in the second quarter of this year grew by 68% compared to the second quarter of last year.

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