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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Emart has successfully returned to profitability just one year after recording its first operating loss since its establishment.
On February 11, Emart announced that it posted an operating profit of KRW 47.1 billion on a consolidated basis in 2024, marking a turnaround from the KRW 46.9 billion loss in 2023. This was the first annual loss for Emart since it became an independent entity from Shinsegae’s hypermarket division in 2011.
The company attributed its recovery to intensive restructuring and operational improvements. Excluding one-time costs of KRW 213.2 billion related to a recent Supreme Court ruling on ordinary wages, Emart's "real" operating profit stands at KRW 260.3 billion.
On a standalone basis, Emart’s operating profit fell 35.2% year-on-year to KRW 121.8 billion. However, after adjusting for the one-time wage-related expense (KRW 139.8 billion), its operating profit reached KRW 261.6 billion, reflecting a 39% increase from the previous year.
Despite prolonged domestic economic sluggishness and the continued growth of online shopping, Emart performed relatively well. Its warehouse-style discount chain, Emart Traders, also delivered strong results, with revenue rising 5.2% to KRW 176.8 billion and operating profit surging 59.0% to KRW 92.4 billion. The company attributed this growth to increasing demand for value-for-money products amid high inflation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
