GS Geonseol, Q1 Operating Profit 159 Billion KRW... Up 3.9% YoY

GS Engineering & Construction announced on the 27th that its operating profit for the first quarter of this year reached 159 billion KRW, a 3.9% increase compared to the same period last year.

According to GS Engineering & Construction, first-quarter sales amounted to 3.513 trillion KRW, a 47.9% increase compared to 2.376 trillion KRW in the same period last year. Operating profit rose to 159 billion KRW, up 3.9% from 153 billion KRW in the same period last year. Notably, operating profit increased by 42.0% compared to the previous quarter.

One notable point in this performance by business segment is the new business division. Due to the recent rise in cost ratios caused by the downturn in the domestic construction market, the gross profit margin of the architecture and housing division in the first quarter of 2023 decreased slightly to 9.8% from 14.6% in the same period last year. However, the gross profit margin of the new business division significantly increased to 23.5% from 16.0% in the same period last year.

In particular, first-quarter sales in the new business division also rose to 325 billion KRW, a 69.3% increase compared to 192 billion KRW in the same period last year, confirming that the results of continuous investment in the new business division have become visible.

Major new orders in the first quarter were led by the architecture and housing division, securing projects such as Busan Citizen Park Promotion Zone 1, Icheon Jeungpo-dong Apartment Complex, LGD Paju P10 Construction, and in the infrastructure division, the Shinbundang Line Gwanggyo~Homaesil double-track railway Section 2, among others.

GS Engineering & Construction stated, “We achieved favorable results as overseas investment and development projects currently underway in the new business division bore fruit. Moving forward, we will secure future growth engines through active expansion of new businesses not only domestically but also overseas, while strengthening the foundation for sustainable management through profitability-based business promotion and internal stability enhancement.”

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