"E-mart's Construction Cost Burden, Q3 Operating Profit 77.9 Billion KRW... Down 22.6%"

Emart Separate Operating Profit 110.2 Billion KRW... 5% Increase
Effects of Customer-Centric Product Development and Store Renewal

Emart announced on the 14th that its consolidated operating profit for the third quarter of this year was 77.9 billion KRW, a decrease of 22.6% compared to the same period last year. During the same period, sales increased by 2.2 billion KRW to 7.7096 trillion KRW compared to last year. The operating profit of Shinsegae Construction decreased by 55.1 billion KRW compared to last year due to increased cost burdens such as high interest rates and rising raw material prices, which had an impact.

On a standalone basis, Emart recorded an operating profit of 110.2 billion KRW, a 5% increase compared to the same period last year. This is the first time in three quarters since the fourth quarter of last year that Emart’s standalone operating profit has shown growth. Total sales decreased by 2.2% to 4.4386 trillion KRW.

Emart evaluated that customer-oriented product innovation such as the year-round project for price stabilization, "The Limited," store renovations reflecting customer lifestyles, and cost efficiency efforts to improve profitability were effective in strengthening core business competitiveness. Specialty stores centered on No Brand have continued stable performance after restructuring the business structure focused on profitability. Operating profit for the third quarter was 9.4 billion KRW, with a cumulative operating profit of 28.5 billion KRW.

Gmarket recorded an operating loss of 10.1 billion KRW in the third quarter, a reduction of 4.8 billion KRW compared to last year. Continuous efforts to strengthen profitability have been effective, raising expectations of reaching the break-even point in the fourth quarter.

Operating profits of Chosun Hotel & Resort and Shinsegae Property were 14.9 billion KRW and 10.6 billion KRW respectively, influenced by the endemic (periodic outbreak of infectious diseases). These figures increased by 1.7 billion KRW and 8.4 billion KRW respectively compared to the same period last year.

Additionally, Starbucks continued its growth trend with an operating profit of 49.8 billion KRW, up 23.2 billion KRW from last year, and Shinsegae Food recorded an operating profit of 7.8 billion KRW, an increase of 3.5 billion KRW.

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