Coway Surpasses 1 Trillion KRW in Malaysia Alone... Sets Sights on 4 Trillion KRW Annual Sales

2022 Cumulative Sales Reach 3.8561 Trillion KRW
Annual Sales Expected to Surpass 4 Trillion KRW This Year
Notable Overseas Achievements Including Malaysia

[Asia Economy Reporter Kim Cheol-hyun] Coway recorded nearly 4 trillion won in sales last year. Despite challenging domestic and international environments such as the global economic downturn, it showed continuous growth. In particular, overseas business achievements stood out, with sales of 1 trillion won in Malaysia alone last year.

Coway announced on the 16th that its annual management performance for last year showed sales of 3.8561 trillion won and operating profit of 677.4 billion won. Sales increased by 5.2% compared to the previous year, approaching 4 trillion won. Operating profit also rose by 5.8% compared to last year.

Domestically, sales reached 2.277 trillion won, up 1.4% from the previous year. Sales of premium design home appliances such as the 'Noble Collection,' 'Icon Water Purifier 2,' and 'Icon Ice Water Purifier' led the growth.

Noteworthy is the performance of overseas business. Last year, Coway's overseas subsidiaries recorded annual sales of 1.4019 trillion won, a 15.4% increase from the previous year. In particular, the Malaysian subsidiary's sales reached 1.0916 trillion won, surpassing 1 trillion won for the first time. This is an 11.4% increase compared to the previous year. Coway first entered Malaysia in 2007. The company entered the local market with a strategy to transplant the 'rental marketing' used domestically to Malaysia. Since rental business inherently relies on a direct sales organization for sales and maintenance visits, Coway composed most of its workforce locally. Through this localization strategy, Coway expanded its business in Malaysia, growing sales to the scale of 1 trillion won.

Coway's growth is steep. Last year's fourth-quarter sales were 980.2 billion won, and operating profit was 163.7 billion won, increasing by 3.6% and 17.5%, respectively, compared to the same period last year. Overseas sales in the fourth quarter were 360.6 billion won, growing 19.6% year-on-year. Considering this growth trend, Coway is expected to open the era of 4 trillion won in sales this year. Hanwha Investment & Securities forecasted that Coway will record sales of 4.1864 trillion won this year. They are particularly focusing on the achievements of overseas business. Lee Jin-hyeop, a researcher at Hanwha Investment & Securities, explained, "This year, Coway's momentum in overseas subsidiaries such as Malaysia and Thailand is expected to expand," adding, "The Thai subsidiary is expected to contribute to profits in the second half of this year."

Moreover, Coway shifted to a sole leadership system under CEO Seo Jang-won last month, focusing its strategy on continuing sustainable growth in the global market. CEO Seo, a global expert, led overseas investments as Vice President of Investment Strategy at Netmarble before joining Coway. The recently launched sleep and healing care brand 'Virex' is also expected to become a new source of revenue. Virex encompasses mattress and massage chair product lines.

CEO Seo said, "This year, while prioritizing efforts to secure competitiveness for global market expansion, we will do our best to make the sleep and healing care brand ‘Virex,’ led by smart mattresses, another solid pillar of sales."

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