Hansae Yesup Q3 Operating Profit 65.5 Billion KRW... Up 266% YoY

[Asia Economy Reporter Song Seung-yoon] Hansae Co., Ltd. announced on the 14th through a public disclosure that its sales in the third quarter of this year reached 588.3 billion KRW, a 41% increase compared to the same period last year. Operating profit recorded an all-time high for the third quarter at 65.5 billion KRW, a 266% increase.

The increase in sales is attributed to the rise in purchases of outerwear, which has a higher unit price compared to indoor wear, due to the reopening of business activities following the reopening (resumption of economic activities). There was also an increase in orders for activewear specialized brands.

Along with the reopening, the main production facilities in Vietnam began full-scale operation, enhancing productivity, and the average quarterly exchange rate rose by 15.6% compared to the same period last year, adding a won conversion effect. The seasonal characteristic that FW season products, which have higher unit prices than SS season products, accounted for a large portion this quarter also had an impact. Hansae Co., Ltd. expects total sales for this year to exceed 2 trillion KRW.

Hansae Co., Ltd. explained, "The slowdown in the US apparel consumption market and the resulting inventory burden on apparel companies are expected to have some impact," but added, "However, the strong dollar trend is expected to continue until the end of the year, and with the anticipated decline in prices of major raw materials such as international cotton and the normalization of global logistics networks, costs are expected to be managed stably."

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