Coway, 3Q Operating Profit 168.6 Billion KRW... 20.2% Increase YoY

Domestic Business Declines 5.1% Due to CS Doctor Union Strike and Other Factors
Overseas Business Sector Drives Quarterly Performance with 46.7% Increase

[Asia Economy Reporter Kim Cheol-hyun] Coway (CEO Lee Hae-sun) announced on the 4th that its sales in the third quarter of this year recorded 800.4 billion KRW, an increase of 5.4% compared to the same period last year. Operating profit and net profit for the period recorded 168.6 billion KRW and 116.8 billion KRW, respectively, up 20.2% and 5.5% from the same period last year. The cumulative sales for the third quarter reached 2.3748 trillion KRW, and operating profit was 476.6 billion KRW, up 6.8% and 15.2% respectively compared to the same period last year.

Domestic environmental home appliance business performance declined due to difficult internal and external environmental factors such as the total strike of the service organization CS Doctor and the resurgence of COVID-19. Sales recorded 507.4 billion KRW, down 5.1% compared to the same period last year, and rental sales volume also decreased by 26.6% to 285,000 units compared to the same period last year. Due to these effects, domestic rental accounts decreased by 11,000 units. However, innovative products such as the Icon water purifier are receiving positive responses from consumers, and Coway expects to achieve a performance rebound in the fourth quarter.

Although domestic performance was sluggish, the overseas business division led the performance increase by delivering results. Coway’s overseas business sales in the third quarter recorded 271.3 billion KRW, up 46.7% compared to the same period last year, thanks to smooth operations of major overseas subsidiaries and efforts to diversify overseas clients. The Malaysian subsidiary continued high growth despite COVID-19 through aggressive sales activities and marketing. The Malaysian subsidiary’s third-quarter sales reached 178.8 billion KRW, up 33.8% compared to the same period last year. The US subsidiary’s sales recorded 51.8 billion KRW, up 130.7% compared to the same period last year, due to increased air purifier sales.

As of the third quarter of 2020, Coway’s total domestic and overseas accounts grew to 8.1 million accounts, an increase of 470,000 accounts compared to the same period last year, supported by successful net account growth in overseas subsidiaries such as Malaysia, despite a decrease in net domestic accounts. Lee Hae-sun, CEO of Coway, said, “In the third quarter, the total strike of CS Doctor and the resurgence of COVID-19 caused significant difficulties for the domestic business. However, the growth in overseas business offset this, allowing us to maintain slight growth in key management indicators such as sales and net profit.” He added, “Recently, Coway unveiled a new CI and is striving to become a ‘New Coway’ by launching innovative products like the Icon water purifier that have never existed before, so we expect to be a company with even greater prospects going forward.”

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