Welcron Surpasses 100 Billion KRW in Sales for 3 Consecutive Years... "Aiming for Balanced Growth"

[Asia Economy Reporter Donghyun Choi] Textile specialist Welcron announced on the 24th that it recorded separate 기준 sales of 110.1 billion KRW, operating profit of 12.1 billion KRW, and net profit of 9.5 billion KRW last year, surpassing 100 billion KRW in sales for three consecutive years.

Last year's sales decreased by 10.9% and operating profit by 31.7% compared to the previous year. However, net profit increased by 10.8% during the same period. This performance change is analyzed to be influenced by a slowdown in operations due to excessive competition in the mask market within the melt-blown (MB) filter business area. Additionally, opportunity costs arose from increased advertising and marketing expenses to strengthen online-to-offline (O4O) services in response to the development of the non-face-to-face shopping market, as well as rising export freight costs amid global supply chain instability.

However, Welcron expects to continue strong performance this year as its core living division showed favorable results. Since the spread of COVID-19, consumer interest in home interior and bedding has increased, making Welcron's functional bedding products such as allergy care bedding and antibacterial bedding popular. Furthermore, the reflection of order achievements in the defense business division, including bulletproof plate supply contracts, has been largely deferred to this year, which is expected to drive growth.

Welcron launched a composite materials center in Gimhae, Gyeongnam in 2020, enhancing its defense product production capacity. The proportion of the defense business relative to total sales is also gradually increasing. Welcron plans to focus on expanding the supply of personal protective bulletproof plates in overseas defense markets and discovering new clients for additional armor plates for vehicles and ships.

A Welcron official stated, “Amid the spread of COVID-19, rather than reckless expansion, we aim for balanced growth through strengthening distribution networks and investing in the industrial materials sector. Recently, the 'home styling' trend has led to stable sales in the living business, and industrial materials such as high-performance bulletproof plates (Level IV) are also expected to perform well this year.”

Meanwhile, Welcron is accelerating research on new materials through its own technology research institute. Based on core technologies in high-performance fibers, Welcron is concentrating its capabilities on developing functional materials applicable to its bedding brand as well as high value-added medical materials such as artificial blood vessels.

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