Emart Surpasses 7 Trillion Won in Q1 Sales... "Balanced Growth Online and Offline"

Emart Q1 Performance.

[Asia Economy Reporter Jeon Jinyoung] Emart has surpassed quarterly sales of 7 trillion won for the first time in its history.

Emart announced on the 12th that its consolidated net sales for the first quarter of this year reached 7 trillion 3.5 billion won, an 18.8% increase compared to the same period last year. The consolidated operating profit for the first quarter was 34.4 billion won.

On a separate basis, the total sales for the first quarter increased by 0.5% from the same period last year to 4 trillion 2.189 billion won, with an operating profit of 91.7 billion won.

Looking at the performance by business division, discount stores recorded total sales of 3 trillion 930 billion won, up 3.0% year-on-year, and Traders recorded total sales of 840.9 billion won, up 0.3%.

In particular, existing discount stores grew by 2.4%, continuing a growth streak for seven consecutive quarters since the third quarter of 2020.

Emart explained, "Despite the challenging business environment due to Omicron, we were able to maintain steady growth through strengthening grocery competitiveness and continuous offline store renewals."

However, the amortization of intangible assets from SCK Company and Gmarket Global, whose shares were acquired last year, affected the consolidated operating profit.

In the online business, SSG.com’s separate first-quarter gross merchandise volume (GMV) increased by 23% year-on-year to 1 trillion 558.6 billion won, and W Concept recorded a GMV of 88.1 billion won in the first quarter, a 56% increase compared to the same period last year.

Gmarket Global, incorporated as a subsidiary in December last year, recorded a GMV of 3 trillion 7.98 billion won in the first quarter.

Chosun Hotel & Resort posted sales of 90.7 billion won, up 75.3% year-on-year, based on improved occupancy rates due to reopening, and improved its operating loss from 20.3 billion won to 7.2 billion won.

Emart24 also surpassed 6,000 stores, with first-quarter sales increasing by 14.5% year-on-year to 484.2 billion won, and its operating loss narrowed from 5.3 billion won to 0.4 billion won.

Emart stated, "We will continue investing in expanding logistics infrastructure and building next-generation systems to expand our online business, while accelerating offline store renewals to achieve the full-year consolidated sales target of 29 trillion 6.5 billion won."

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