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Emro, the No.1 AI-based supply chain management software company in Korea, has achieved its highest-ever first half performance.

Emro announced on the 28th that its cumulative sales for the first half of this year reached 29.3 billion KRW on a consolidated financial statement basis, a 2.7% increase compared to the same period last year.

An Emro representative explained, "As the global economic downturn continues, companies are reducing investments in IT infrastructure," adding, "Despite the difficulties, Emro is steadily growing."

The number of customers newly adopting supply chain management software and AI software has increased. Software license fees and cloud service usage fees rose by 14.6% and 17.5%, respectively, compared to the first half of last year. Royalties for software licenses also increased by 2.8% year-on-year.

The technology-based revenue, which sums software license fees, cloud service usage fees, and royalties, totaled 11.58 billion KRW, marking a 9.7% increase compared to the same period last year. Its share of total sales also increased by 2.5 percentage points.

Operating profit decreased by 5.9% to 22.7 billion KRW. Research and development costs for the integrated supply chain management (SCM) SaaS platform targeting overseas markets increased. Net profit recorded a loss of 13.62 billion KRW due to an approximately 19.8 billion KRW valuation loss on derivative financial instruments. This is a simple accounting adjustment caused by the rise in the current stock price compared to the issuance price of convertible bonds (CB) and bonds with warrants (BW) issued at the end of May, with no actual cash outflow or other impact.

In the first half of this year, Emro secured numerous new customers in sectors recently attracting market attention, such as defense, solar energy, semiconductor materials, and pharmaceutical & bio. As of the end of June this year, the order backlog stood at 46.8 billion KRW, a 9.1% increase compared to the same period last year.

Emro became a subsidiary of Samsung SDS as of May 31. As a strategic investment for Samsung SDS’s overseas SaaS business, Emro plans to enter the rapidly growing global supply chain management software market in the form of a SaaS platform together with Samsung SDS.

Currently, Emro is developing an integrated SCM SaaS platform for overseas markets in collaboration with Samsung SDS and o9 Solutions, a global leader in supply chain planning (SCP) based in the United States. The top companies in the supply chain management field are combining their technological capabilities, expertise, customer bases, and sales strengths to officially launch business in overseas markets starting next year.

An Emro representative said, "The overseas supply chain management software market is more attractive than the domestic market in all aspects, including market size, growth potential, and profitability," adding, "Emro, Samsung SDS, and o9 Solutions will join forces to achieve a 'quantum jump' in overseas markets with unparalleled competitiveness."

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