Hanssem Posts 'Surprise' Q3 Earnings... Operating Profit Up 236.34%

Hanssem Sangam Building.
Photo by Hanssem

[Asia Economy Reporter Kim Jong-hwa] Hanssem continues its solid growth by achieving 'surprising' results even in the off-season third quarter. It is analyzed that the growth in the furniture sector due to untact (contactless) consumption contributed significantly.

Hanssem announced on the 12th that its consolidated operating profit for the third quarter of this year was 24 billion KRW, an increase of 236.34% compared to the same period last year, and sales grew by 25.4% to 514.9 billion KRW compared to the same period last year.

A Hanssem official stated, "Despite the third quarter being an off-season, we showed solid performance following the second quarter," adding, "Operating profit also grew due to the strong performance of the highly profitable B2C sector."

The B2C sector led sales growth with a 31.7% increase. In particular, the company explained that the furniture sector, including the online segment (68.9%), grew significantly by 32.0%, driven by the solid flow of the remodeling and kitchen business centered on the Rehouse business, which is a future core strategic business, and the recent untact consumption trend.

The increase in the furniture sector is mainly attributed to the lifestyle changes of future consumers, with more time spent at home continuously increasing after the COVID-19 pandemic and a growing demand to decorate personal spaces.

The company said, "The furniture sector quickly reflected these societal changes by developing growth strategies and products, breaking several years of stagnation and laying the foundation for renewed growth," adding, "In particular, through product development combining practical functions and trendy designs, as well as strengthening eco-friendliness and improving product power and quality, we are continuing encouraging results across all product categories including bedrooms, living rooms, studies, and children's rooms."

A Hanssem official forecasted, "The advent of the untact era is expected to bring greater interest in residential environments with the moving and wedding season in the fourth quarter," adding, "Also, as the number of aging houses increases and the value of the home space grows, the home furnishing industry will continue its steady growth trend according to these key trends."

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