Hanssem Reports Q1 Operating Profit of 10.1 Billion Won... Growth in B2C Rehaus and Home Furnishing Sales

Strengthening Core B2C Product Lines and Marketing

B2B Revenue Declines Due to Construction Market Slowdown

Entry into Office Furniture...Merger with Hanssem Nexus

Hanssem reported a 56% year-on-year increase in operating profit as a result of continued investment in its core B2C (business-to-consumer) product lines. Meanwhile, revenue from its B2B (business-to-business) segment declined due to the downturn in the construction market.

On May 11, Hanssem announced its preliminary consolidated results for the first quarter, with sales of 399.4 billion won and operating profit of 10.1 billion won. Compared to the same period last year, sales decreased by 9.9%, while operating profit rose by 56.4%.

Hanssem explained, "Amid challenging market conditions, we restructured our sales portfolio around core product lines and strategically reallocated various necessary expenses to improve efficiency, thereby establishing a solid foundation for stable profit generation."

First-quarter B2C sales increased compared to the same period last year. Strategic product lines with enhanced design and quality, in line with the trend toward more sophisticated living spaces, received a positive response from the market.

In the Rehaus division, Hanssem introduced a wide range of strategic product lines that maximized expertise and quality standards in core categories such as kitchens, bathrooms, and storage, driving growth. In the home furnishing division, the company expanded its influence by continuously launching new products in categories such as dress rooms, desks, and dining tables, reflecting evolving trends.

Hanssem's Saem Festa held last March. Hanssem

The Saem Festa held in March helped boost company-wide sales. During the event, average daily order value increased by 19% compared to the previous event, and on the final day, Hanssem recorded its highest-ever single-day order value. Both online channel 'Hanssem Mall' and all offline channels simultaneously achieved the highest monthly contract value in the past two years. Hanssem Mall's first-quarter sales rose by 20% year-on-year.

Due to the downturn in the construction market, the residential special sales market contracted, resulting in a year-on-year decrease in first-quarter B2B sales. To overcome this, Hanssem diversified its business portfolio by pioneering the office furniture market. In March, the company launched a new office furniture lineup and plans to expand its influence in the office furniture market in response to changing business environments.

Hanssem’s strategy is to maximize the B2B expertise of both companies through its merger with Hanssem Nexus. By combining Nexus’s competitiveness in the high-end market with Hanssem’s infrastructure, the company aims to target the premium special sales market for top-tier residential redevelopment and reconstruction projects in key areas of Seoul. Hanssem aspires to solidify its position in the high value-added residential market by providing an integrated one-stop solution encompassing design, construction, and quality management.

A Hanssem representative said, "Despite unfavorable market conditions in the first quarter this year, such as unexpected changes in the market environment caused by war and the contraction of upstream industries, we focused on delivering substantial growth. Although the environment is expected to remain challenging in the second quarter, Hanssem plans to further strengthen its fundamental competitiveness and customer-centric differentiated services to reinforce its leadership position in the home interior market."

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