Homeplus Achieves Two Consecutive Years of Sales Growth... Operating Loss Also Improves

Net Loss of 574.3 Billion KRW Last Year

Homeplus posted a loss of over 500 billion KRW last year despite sales growth.

According to Homeplus on the 31st, the total sales for the '2023 fiscal year (March 2023 to February 2023)' amounted to 6.9315 trillion KRW, a 5% increase compared to the previous year. Operating loss improved by 60.8 billion KRW to 199.4 billion KRW, but net loss increased by 128.4 billion KRW from 445.9 billion KRW to 574.3 billion KRW, marking a loss for the third consecutive year.

By business segment, large discount stores saw a 7% increase in sales due to the effect of converting to Mega Food Market, a food-specialized store. The 27 stores converted to Mega Food Market showed an average sales growth rate of over 20%. The online segment achieved sales of 1 trillion KRW for three consecutive years based on customer-tailored delivery. However, due to the impact of high interest rates, financial costs increased, preventing the company from escaping large-scale operating losses. Operating loss includes interest expenses on borrowings and debt costs related to store leases.

A Homeplus representative explained, "The steady influx of loyal customers, with membership exceeding 10 million recently, also had a positive impact on sales," adding, "The expansion of net loss is due to a decrease in asset securitization income from store disposals."

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