11st Reduces Operating Loss by 50 Billion Won Last Year... "Profitability Improvement"
Sales Plunge 35% to 561.8 Billion KRW Due to Reduced Direct Purchases
Targeting Company-wide EBITDA Profitability This Year
11st, a subsidiary of SK Square, announced on the 25th that it reduced its operating loss by approximately 50 billion KRW last year through profitability-focused management.
According to the Financial Supervisory Service's electronic disclosure system, 11st's operating loss last year was 75.4 billion KRW, down 50.4 billion KRW from the previous year (125.8 billion KRW). Sales amounted to 561.8 billion KRW, a 35% decrease compared to the previous year (865.5 billion KRW).
The decrease in sales was influenced by a reduction in the retail (direct purchase) scale, represented by 'Shooting Delivery.' By reducing direct purchase products, which have high cost burdens, and increasing the volume of the integrated fulfillment service 'Shooting Seller,' overall sales declined.
Operating profit benefited from marketing efficiency improvements and fixed cost reductions such as office relocation. As a result, the core open market division recorded a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The open market division has posted operating profit for 11 consecutive months from March last year to January this year.
Last year, 11st introduced various new services, including new vertical services and free membership programs. This year, the company plans to focus more on securing growth momentum. 11st aims to expand the 'Mart' and 'Fashion' categories, which have seen increased online purchase demand, and increase customer inflow through free membership programs and strengthened delivery capabilities. Recently, it introduced weekend same-day delivery, establishing a '7-day delivery' system.
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Seung An, president of 11st, said, “The company's performance improved significantly last year as the results of company-wide management efficiency efforts centered on the core open market business began to materialize.” He added, “This year, 11st will focus more on seller and customer value, establish growth momentum to secure stable profitability, and achieve company-wide EBITDA profitability.”
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