Zinus Achieves Turnaround in Q3 Revenue and Operating Profit

Sales of 272.9 billion KRW, Operating Profit of 11.9 billion KRW

Zinus achieved a turnaround in both sales and operating profit in the third quarter of this year.

Zinus, a furniture and mattress specialist company affiliated with Hyundai Department Store Group, announced on the 4th that its third-quarter sales this year were preliminarily estimated at 272.9 billion KRW, a 23.2% increase compared to the previous year. Operating profit for the same period rose 277.1% to 11.9 billion KRW.

A Zinus representative said, “As orders normalized in the core North American mattress market, overall production volume increased, resulting in growth in both sales and operating profit. In particular, this year, the transition from the existing ‘Big Box’ product to the new ‘Small Box’ product, which improved compression rates by more than 50%, significantly enhanced profitability, realizing a structural turnaround.”

Zinus also announced on the same day that it decided to carry out a stock dividend of 0.1 shares per 1 share to enhance shareholder value. Through this stock dividend, 1,993,744 new shares will be issued, increasing the total number of issued shares to 22,254,576. The record date for the new shares allocation is November 20.

A stock dividend involves issuing new shares from a company’s capital surplus and distributing them free of charge to existing shareholders. Typically, a stock dividend increases the number of circulating shares, leading to more active trading and acting as a positive factor for the stock price. Unlike a paid-in capital increase, existing shareholders can increase their number of shares without any cost, making it a representative shareholder-friendly policy.

A Zinus representative explained, “We decided on the stock dividend to enhance shareholder value through increased trading activity resulting from the expanded number of circulating shares. The funds required for the stock dividend will be sourced from the capital surplus.”

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