Samsung C&T’s Q1 operating profit up 11%

[Photo by MK DB]

Samsung C&T Corp. on Wednesday announced its first-quarter results for 2024 that showcased resilience even amid global economic challenges. The construction, trading, fashion and resort company reported a revenue of 10.79 trillion won ($7.83 billion) and an operating profit of 712 billion won for the quarter. Compared to the same period a year ago, the revenue and operating profit increased by 5.4 percent and 11.1 percent respectively.

In the construction sector, the company’s revenue totaled 5.58 trillion won and operating profit was 337 billion won in the first quarter. Leveraging its stable construction capabilities, Samsung C&T saw a significant expansion in both revenue and operating profit by 21.4 percent and 15.4 percent respectively compared to a year earlier thanks to major projects that were secured recently.

But the trading sector saw a decline in both revenue and operating profit, with sales at 2.90 trillion won and an operating profit of 85 billion won. Factors such as falling raw material prices and the streamlining of low-profit trading lines led to reduced volumes, revenue, and operating profit. Nevertheless, there was a positive trend in profitability, with operating profit up by 49.1 percent compared to the previous quarter.

In the fashion sector, Samsung C&T faced challenges including weakened consumer sentiment and off-season effects, resulting in a slight decline in revenue (517 billion won) and operating profit (54 billion won) by 1.7 percent and 5.3 percent respectively compared to the previous year. But the company maintained its performance at the previous year’s level based on its brand and product competitiveness.

The resort sector recorded growth, with revenue reaching 842 billion won and operating profit 21 billion won, up 6.9 percent and 200 percent respectively, from a year ago. This growth can be attributed to the improving performance of Everland’s content-based offerings and the expansion of food distribution.