J. Stephan Turns Operating Profit Positive... Concerns Over Inclusion in Management Item Resolved

[Asia Economy Reporter Hyungsoo Park] J. Stefan alleviated concerns about being designated as a management item by turning its operating profit positive on a separate basis last year.

J. Stefan announced on the 12th that it recorded an operating profit of 860 million KRW on a separate basis last year, turning to a profit. During the same period, sales amounted to 24.87 billion KRW, an increase of about 12.8% compared to the previous year. Net profit for the period was 600 million KRW, also turning positive.

Looking at quarterly performance, sales of the core business increased and profitability improved. In the fourth quarter of last year, sales reached 6.5 billion KRW, and operating profit was 540 million KRW. Compared to the same period last year, sales increased by 77%, and net profit turned positive.

The ‘selection and concentration strategy’ on the core business led to improved performance. J. Stefan focused on the mobile printer business, which has good growth potential and profitability, by improving the structure of the mini print business. Additionally, profitability was enhanced through business unit restructuring, including redeployment of specialized personnel, and reduction of fixed costs.

A company official explained, “We recorded an operating profit due to overseas market expansion of mini printers, cost reduction from restructuring, and improvement of the profit structure. This has alleviated concerns about designation as a management item, and from the fourth quarter of last year, the trend of performance improvement is expected to solidify.”