E-Mart posts record quarterly OP in 3 yrs on enhanced competitiveness

E-Mart CI

South Korean retailer E-mart Inc. achieved a record quarterly operating profit in three years in the third quarter, driven by a strategic focus on its core business and intensified efforts to improve profitability.

In a regulatory filing on Thursday, E-mart announced that its consolidated operating profit was estimated at 111.7 billion won ($79.4 million) for the third quarter, up 43.4 percent from the same period last year.

Third-quarter revenue declined by 2.6 percent to 7.51 trillion won but net profit surged 423.9 percent to 105.4 billion won during the same period.

On a separate basis, E-mart’s operating profit jumped 11.4 percent to 122.8 billion won in the third quarter from a year ago on sales of 4.67 trillion won, up 5.3 percent.

E-mart attributed its solid results to ongoing efforts to strengthen its core business competitiveness.

Leveraging its 30 years of retail expertise, E-mart implemented pricing strategies to offer popular essentials at the lowest prices through bulk collaborations with major manufacturers.

Innovative offline spaces, particularly with the recent reopening of shopping mall Starfield Market Jukjeon, also boosted performance.

Starfield Market Jukjeon saw a 49 percent rise in consumer traffic and a 180 percent increase in new customers by the end of September, contributing to a 48 percent increase in sales.

By division, its warehouse-style discount chain Traders Wholesale Club posted third-quarter revenue of 965.2 billion won, up 2.3 percent, and operating profit of 34.4 billion won, up 30.3 percent.

The specialty store business, led by the in-house No Brand label, showed steady growth with profitability-focused restructuring, achieving more than 10 billion won in operating profit for three consecutive quarters.

E-mart’s consolidated subsidiaries also posted strong improvements. SCK Company, which operates Starbucks, saw a 33.3 percent increase in operating profit to 66.4 billion won, aided by promotions and operational efficiencies.

E-commerce affiliate SSG.com managed to narrow its operating loss to 16.5 billion won from 30.7 billion won, driven by increased advertising revenue and cost savings in marketing and logistics.

Convenience store chain E-mart 24 reduced its operating loss to 100 million won from 3.1 billion won last year.

Gmarket Inc., however, saw its operating loss widen from 10.1 billion won to 18 billion won in the third quarter due to increased investments and marketing costs.