Ourhome Achieves Profit Turnaround in One Year... The Impact of Gu Ji-eun's Management Innovation

Koo Ji-eun, Vice Chairman of Ourhome, is conducting an on-site inspection of the Dong Seoul Logistics Center.

[Asia Economy Reporter Seungjin Lee] Ourhome, which posted a deficit last year, succeeded in turning a profit in just one year.

On the 30th, Ourhome projected sales of approximately 1.72 trillion KRW and an operating profit of about 25 billion KRW this year. This marks a normalization just one year after recording a deficit in 2020 due to management difficulties caused by COVID-19 and other factors.

The core businesses of group catering and food ingredient divisions led the profit achievement by improving profitability through expanding new order volumes, discovering new clients, and cost reduction. In particular, the food ingredient division recorded its highest-ever performance by significantly increasing profitability not only through discovering new clients but also by managing poor-performing clients and providing consulting.

The food business division drove sales growth by expanding new entries into agencies and large supermarkets. Significant profit improvements were also made in overseas subsidiaries in the United States, Poland, and Vietnam due to increased group catering meals and new store openings, which were key factors in turning a profit.

In September, Ourhome's U.S. subsidiary signed a contract to operate the cafeteria of the United States Postal Service, which oversees the U.S. postal system. This is the first time a domestic group catering company has secured a contract to operate a cafeteria for a U.S. public institution, and it marks 11 years since Ourhome entered the overseas group catering market. The China business also contributed to sales growth. As of 2021, the number of stores in China reached 41, a 24% increase compared to 2018. In Vietnam, 39 stores are currently operated. Since opening the first store in 2017, the business has grown rapidly over four years.

Home Meal Replacement (HMR) also played a role in turning a profit. Ourhome Mall's sales this year increased by 189% compared to the previous year, and the number of new registered customers rose by 250%. Recently, a subscription delivery service was newly launched, allowing customers to receive products at their desired frequency and time, with demand steadily increasing.

Since his appointment, Vice Chairman Gu has visited logistics centers and major stores multiple times, confirming Ourhome's strengths through on-site management while quickly improving profits by eliminating unreasonable and inefficient elements. He also strived to apply innovation and growth drivers found on-site to the future values Ourhome pursues.

Vice Chairman Gu Ji-eun has emphasized that "Ourhome must be reborn as a new company by adding future-oriented values based on its competitiveness," and is known to have urged employees to "combine the strengths of large corporations and startups, maintain systematic and efficient systems, and respond quickly to market changes by adding startups' swift decision-making and bold execution."

An Ourhome official stated, "Despite the difficult domestic and international management environment last year, all employees united under an emergency management system and, after much effort, were able to turn around performance. Especially since Vice Chairman Gu Ji-eun's appointment, performance improvements have been made in the previously sluggish group catering and food businesses. We will continue to strive to sustain explosive growth by expanding new group catering operation contracts and HMR product development."

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