LVMCHoldings "Q3 Profit Structure Improvement... Continued Operating Profit Surplus"

[Asia Economy Reporter Hyunseok Yoo] LVMH Holdings announced on the 30th that it recorded a cumulative sales revenue of 215.7 billion KRW and an operating profit of 1.1 billion KRW on a consolidated basis for the third quarter of this year. Compared to the same period last year, sales revenue decreased by 13.6%, but operating profit turned positive.

Sales revenue decreased compared to the same period last year due to the impact of COVID-19, but increased by 74% compared to the previous quarter. Gross profit increased by 7.2 billion KRW compared to the same period last year, and the gross profit margin rose from 8.7% to 13.5%. This is interpreted as the profitability-focused management strategy pursued so far showing results even amid the COVID-19 situation.

A company official stated, "Through the successful completion of a paid-in capital increase last October, we improved financial soundness while investing in production facilities to expand the market, managing stable parts ordering and supply, thereby expanding market share in each country. Along with this, we plan to secure mid- to long-term growth engines through the promotion of new businesses."

An LVMH Holdings official said, "With the recent enforcement of RCEP, which includes 10 ASEAN countries, Korea, China, Japan, Australia, and New Zealand, LVMH Holdings, representing the ASEAN market, is expected to have growth potential not only in existing businesses but also in newly developed businesses based on successful cases and human and material networks accumulated over more than 30 years of business operations in this region."