Innocean, 1Q Operating Profit Down 23.5% YoY Due to Increased Selling and Administrative Expenses (Comprehensive)
Operating Profit of 19.2 Billion KRW and Sales of 459.7 Billion KRW
Impact of Increased Selling and Administrative Expenses
Innocean recorded an operating profit of 19.2 billion KRW in the first quarter of this year. This figure represents a decrease of more than 23% compared to the same period last year. The decline in operating profit was due to an increase in overall selling and administrative expenses, including labor costs and general expenses.
Innocean announced on the 9th that its consolidated operating profit for the first quarter of this year was 19.2 billion KRW, down 23.5% from 25.1 billion KRW in the same period last year. During the same period, sales increased by 32.6% to 459.7 billion KRW from 346.8 billion KRW in the previous year.
The operating profit decreased due to an increase in overall selling and administrative expenses. The first quarter selling and administrative expenses, mainly composed of labor costs and general expenses, rose by 13.1% to 157.9 billion KRW from 139.6 billion KRW in the previous year. This was influenced by the addition of approximately 300 employees compared to the previous year from last year through the first quarter of this year, as well as expanded investments in IT systems. Accordingly, labor costs increased by 11.3% from 109.3 billion KRW last year to 121.6 billion KRW this year, and general expenses rose by 19.4% from 30.4 billion KRW to 36.3 billion KRW. Net profit for the period increased by 16.9% to 23.7 billion KRW from 20.3 billion KRW in the previous year.
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An Innocean representative said, "Sales in the Americas region increased noticeably due to the exchange rate effect and an increase in volume from affiliated advertisers," adding, "This year, we will focus on strengthening digital marketing, enhancing shareholder value, and advancing customer experience business capabilities as key strategies."
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