"Strengthening Core Competitiveness" Emart Q3 Separate Operating Profit 110.2 Billion KRW, Up 5% (Comprehensive)

Construction Cost Burden Leads to Operating Profit of 77.9 Billion KRW... Down 22.6%
Offline Top 3 Companies Under Won's Leadership in Q4... Strengthening Purchasing Competitiveness

Emart returned to separate operating profit growth in the third quarter. Customer-centric product policies such as the 'The Limited' project aimed at contributing to price stabilization and major store renovations enhanced core business competitiveness, leading to this result. However, consolidated operating profit decreased due to Shinsegae Construction bearing cost burdens amid high interest rates.

On the 14th, Emart announced that its consolidated operating profit for the third quarter of this year was 77.9 billion KRW, down 22.6% compared to the same period last year. Sales during the same period increased by 2.2 billion KRW to 7.7096 trillion KRW compared to last year. The decrease was influenced by Shinsegae Construction’s operating profit dropping by 55.1 billion KRW year-on-year due to increased cost burdens from high interest rates and rising raw material prices.

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

Emart evaluated that customer-centric product innovation such as the year-round price stabilization project 'The Limited,' store renovations reflecting customer lifestyles, and cost efficiency efforts to improve profitability effectively strengthened core business competitiveness. Specialty stores centered on No Brand have maintained stable performance following a restructuring focused on profitability. Operating profit for the third quarter was 9.4 billion KRW, with cumulative operating profit reaching 28.5 billion KRW.

The number of customers has also continued to increase. Discount stores saw a 5.8% increase in customer visits in the third quarter, following a 5.5% increase in the second quarter, while Traders recorded a 6.2% increase in the third quarter, following 1.3% and 3.2% increases in the first and second quarters, respectively.

Gmarket recorded an operating loss of 10.1 billion KRW in the third quarter, reducing losses by 4.8 billion KRW compared to last year. Continuous efforts to strengthen profitability have raised expectations for breaking even in the fourth quarter.

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

Additionally, Starbucks continued its growth trend with operating profit increasing by 23.2 billion KRW to 49.8 billion KRW, and Shinsegae Food posted an operating profit of 7.8 billion KRW, up 3.5 billion KRW.

Emart’s strategy for sustainable growth includes pursuing external growth through new store openings and store renovations while focusing on strengthening profitability. To this end, Emart plans to integrate the functions of Emart, Emart24, and Emart Everyday, enhancing purchasing competitiveness and increasing synergy through an 'offline three-company unified leadership system.'

Gmarket will focus on profitability improvement efforts that have been effective in reducing losses, such as selling high-margin products and improving logistics efficiency, while SSG.com will continue its 'balanced growth' strategy to achieve a balance between growth and profitability.

Meanwhile, in the fourth quarter, large year-end events carefully prepared by Emart, such as SSG Day and the 30th anniversary celebration, are expected to boost performance. Emart stated, "In the third quarter, product innovation and store renovations from the customer perspective led to a significant increase in customer visits, signaling a recovery in core business competitiveness. We will accelerate the integration of offline three companies’ functions and continue structural reform efforts."

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