Hanssem, Four Consecutive Quarters of Profit... Entering Turnaround Phase

Q1 Sales of 485.9 Billion KRW and Operating Profit of 13 Billion KRW

Hanssem recorded an operating profit of approximately 13 billion KRW in the first quarter of this year. It has entered a full-fledged performance rebound with four consecutive quarters of profit.

Hanssem announced on the 10th that it recorded sales of 485.9 billion KRW and an operating profit of 13 billion KRW in the first quarter. Sales increased by 3.5% compared to the previous year, and operating profit turned positive during the same period.

Hanssem recorded an operating loss in the third quarter of 2022 due to the economic downturn. Since returning to profitability in the second quarter of last year, it has maintained a profit trend for four consecutive quarters. The profit margin is also expanding, marking the start of a full-fledged performance rebound.

Regarding the first quarter results, Hanssem explained that despite an unfavorable market environment such as a slump in housing market transaction volume and high interest rates, the profitability-focused business strategy and efficient growth strategy centered on core products that have been pursued so far yielded the desired results.

The company stated that from the fourth quarter of 2022, strategic supply chain management through purchase cost reduction improved the cost ratio by 2.1 percentage points compared to the same period last year, leading to sustained profitability in the first quarter of this year. It also views that strategic investments such as enhancing the marketing mix centered on core products and improving cost-effectiveness were effective.

Hanssem’s strategy is to simultaneously continue expanding sales and continuously improving profits.

By business segment, Rehouse (remodeling) is responding to changes in market demand with a sales strategy focused on partial construction and single products amid the ongoing housing transaction slump. It is also actively expanding its sales network to revitalize customer engagement through interior exhibitions and open houses in new complexes.

Home furnishing showed strong sales of core products such as children’s room furniture during the peak season, and profitability improved through price competitiveness optimization by channel. The plan is to focus marketing capabilities on competitive core products such as children’s room furniture, signature storage, and hotel beds. In addition, by advancing digital-centered marketing such as social networking services (SNS), Hanssem is increasing penetration among core customers and continuously optimizing advertising efficiency.

Hanssem’s representative event held at the end of the first quarter, ‘Ssaem Festa,’ drove home furnishing performance with a 25% increase in average daily order amount compared to the same event last year, and order increases of 19% online and 96% offline. In the second quarter, the company plans to further accelerate customer inflow and sales growth through the UI/UX overhaul of Hanssem Mall.

Meanwhile, Hanssem will initiate a cash quarterly dividend of 750 KRW per share. Based on improving profitability, it plans to enhance shareholder value through an active shareholder return policy. The dividend record date for this first quarter is March 31, and the payment date is scheduled for May 17.

A Hanssem official stated, “In 2024, we will build a business structure that enables both full-fledged sales growth and profitability improvement,” adding, “We will also repay investors who have trusted and supported us despite the difficult market environment.”

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