Emart Reports Operating Profit of 7.6 Billion KRW in Q2... Returns to Profitability After 3 Years (Comprehensive)

[Asia Economy Reporter Lim Chun-han] Emart announced on the 12th that it has succeeded in turning a profit in the second quarter for the first time in three years.

Emart disclosed that its consolidated operating profit for the second quarter of this year was 7.6 billion KRW, turning profitable compared to the same period last year (operating loss of 47.4 billion KRW). Sales increased by 13% year-on-year to 5.8647 trillion KRW. Net profit rose by 53.6% to 483 billion KRW.

Separate financial results also turned profitable, supported by an expansion in same-store sales growth. On a separate basis, total sales were 3.894 trillion KRW, and operating profit was 5.8 billion KRW, increasing by 9.6% and 20.8 billion KRW respectively compared to the previous year. In particular, the discount store same-store sales expanded for five consecutive quarters, leading the improvement in separate results. The main driver of this growth trend is the grocery strengthening strategy. In fact, looking at Emart’s second-quarter performance by category, food sales increased by 15.7%.

Traders’ second-quarter sales increased by 21% year-on-year to 800.5 billion KRW, and operating profit rose by 61.2% to 26.6 billion KRW. The specialty store business improved operating profit by 4.6 billion KRW compared to the previous year, led by No Brand, which recorded a profit of 6.3 billion KRW.

SSG.com’s total transaction amount grew by 19% in the second quarter and 17% in the first half, reaching 2.5806 trillion KRW. Operating profit slightly decreased due to intensified e-commerce competition but improved by 3.8 billion KRW year-on-year for the first half. Emart24 achieved quarterly profitability again following the third quarter of last year. Sales increased by 19% year-on-year to 479.5 billion KRW, and operating profit rose by 6 billion KRW to 800 million KRW. The number of stores increased by 186 to 5,509.

Shinsegae TV Shopping recorded sales of 63.5 billion KRW and operating profit of 5.7 billion KRW. Shinsegae Food’s sales increased by 8.2% year-on-year to 332.4 billion KRW, and operating profit rose by 5.8 billion KRW to 8.2 billion KRW as the impact of COVID-19 eased. Emart’s U.S. subsidiary, PK Retail Holdings, recorded an operating profit of 10.9 billion KRW, up 7 billion KRW from the previous year. Additionally, Emart Everyday and Shinsegae I&C continued their stable profit trends.

An Emart official said, “Thanks to the growth in Emart’s same-store sales and the balanced growth of subsidiaries, consolidated and separate second-quarter results turned profitable for the first time in three years. We will continue to pursue growth by strengthening the competitiveness of each company.”

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