KOSPI Listed Companies' Q3 Operating Profit Falls 38%... KOSDAQ Also Faces Profitability Decline

It has been revealed that the profitability of listed companies deteriorated in the third quarter of this year. Operating profit decreased by more than 30% and net profit by over 40% compared to the same period last year.

According to the Korea Exchange on the 16th, among 694 listed companies with December fiscal year-end on the KOSPI market, excluding 81 companies not analyzed, the cumulative operating profit on a consolidated basis for 613 companies in the third quarter decreased by 37.98%, and net profit decreased by 41.06% compared to the same period last year. Sales increased by 0.29%.

Major Domestic Companies
Image Source: Yonhap News

The operating profit margin was 4.52%, and the net profit margin was 3.35%, down 2.79 percentage points and 2.35 percentage points respectively from the previous year. This means that for every 1,000 won sold, 45.2 won was earned. After taxes, 33.5 won was earned.

The third-quarter performance showed significant improvement compared to the second quarter. Operating profit and net profit in the third quarter increased by 47.71% and 73.51% respectively compared to the previous quarter. Sales increased by only 1.3%.

Among the 613 companies, 472 companies (77%) posted cumulative net profit surpluses in the third quarter, a decrease of 26 companies compared to the same period last year. Among them, 45 companies turned to profit.

By industry, sales increased in nine sectors including construction and transportation equipment, while they decreased in eight sectors including medical precision and transportation warehousing. Operating profit increased in three sectors including transportation equipment and machinery, but decreased in 14 sectors including electrical and electronics and transportation warehousing. Net profit also increased in five sectors including transportation equipment and machinery, but decreased in 12 sectors including electrical and electronics and transportation warehousing.

In the financial sector, operating profit and net profit of 41 companies (excluding five companies with individual financial statements out of a total of 46) increased by 3.33% and 1.92% respectively compared to the same period last year, showing improved profitability. Operating profit of securities firms increased by 11.04%, and banks by 6.23%. Net profit increased by 14.84% for securities firms and 9.97% for banks.

The consolidated debt ratio at the end of the third quarter this year was 112.46%, down 0.27 percentage points from the end of last year.

For KOSDAQ market companies with December fiscal year-end, cumulative sales on a consolidated basis for the third quarter increased by 3.49%, but operating profit and net profit decreased by 33.60% and 43.76% respectively.

The operating profit margin was 4.16%, and the net profit margin was 3.01%, down 2.33 percentage points and 2.53 percentage points respectively.

Third-quarter performance showed that consolidated sales decreased by 0.22% compared to the previous quarter, operating profit decreased by 10.37%, but net profit increased by 11.04%.

Among 1,112 companies analyzed, 688 companies (61.87%) posted cumulative net profit surpluses in the third quarter, a decrease of 72 companies compared to the same period last year.

By industry, cumulative sales in the third quarter increased by 9.87% and 5.40% respectively in manufacturing and other sectors compared to the same period last year, while the IT sector decreased by 6.43%. Cumulative operating profit and net profit decreased across industries compared to the same period last year. The IT sector's cumulative sales, operating profit, and net profit for the third quarter decreased by 6.43%, 70.63%, and 76.78% respectively compared to the same period last year. Manufacturing sector's cumulative sales increased by 9.87%, but operating profit and net profit decreased by 18.27% and 32.14% respectively. Other sectors' cumulative sales and operating profit increased by 5.40% and 1.23% respectively, but net profit decreased by 8.24%.

Sales of KOSDAQ global segment companies increased by 9.71% compared to the same period last year, while operating profit and net profit decreased by 42.87% and 50.63% respectively.

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