Shinwon reports upbeat Q2 earnings led by brisk exports, online sales

[Source: Shinwon]

Kospi-listed Shinwon reported strong earnings in the second quarter thanks to brisk overseas sales and online sales backed by diversified production bases worldwide and investment in smart, eco-friendly factory systems.

South Korean fashion company Shinwon announced in a regulatory filing on Tuesday that it earned 10.2 billion won ($7.78 million) in consolidated operating profit in the second quarter ended June, more than doubled from the same period of last year, while its sales amounted to 251.2 billion won, up 19.2 percent from a year ago. Its overseas business reported 8.3 billion won in operating profit in the quarter, up 17.6 percent on year on sales of 199.2 billion won, up 18.9 percent. Especially, its operating profit in the first six months of this year amounted to 21.9 billion won, larger than 21.6 billion won, the total achieved for the whole of last year.

The economic reopening was largely owed to the brisk sales, but also it attributed its efforts to meet various customer demands through the diversification of production bases and establishment of smart factory systems to the strong results.

After it set its path for global expansion last year, it has strengthened its global supply networks and made facility investments to achieve the goal by 2030. In Latin America, it added a new production facility in Nicaragua last year to enhance its production capacity through its plant in Guatemala. In Asia, it invested to build intelligent factory systems in Indonesia. It will build a fabric factory in Latin America to cover end-to-end processes in clothing production. In addition, the firm will pursue sustainable growth, developing eco-friendly materials.

Shinwon has also bolstered its e-commerce business by enhancing its platform Showindow, featuring various fashion brands, including Bestibelli, and upgrading online shopping experiences. As a result, sales through the online platform increased 144 percent in the second quarter from a year ago.

¡°Shinwon is a homegrown brand in Korea with a 50-year history, and has made a remarkable success despite global uncertainties, said Chairman Park Seong-cheol.

Its shares dropped 0.82 percent to 1,805 won in the early session on Wednesday.

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