Hanssem's Operating Profit Rises 66.7% Last Year... Sales Recover to 2 Trillion Won After 3 Years

Successful Turnaround After 3 Years, Achieving 2 Trillion KRW in Sales Again
Q4 High Growth in Rehouse, Kitchen, Furniture, and Online Driven by COVID-19 Demand

[Asia Economy Reporter Kim Heeyoon] Comprehensive furniture company Hanssem continued its high-performance streak last year, recording sales of 2 trillion won for the first time in three years.

Hanssem announced on the 5th that its preliminary operating profit for the fourth quarter of last year was 29.451 billion won, a 36.0% increase compared to the same period last year. Last year's annual sales reached 2.067371 trillion won, up 21.7% from the previous year. Cumulative operating profit rose 66.7% to 92.973 billion won compared to the same period last year. Net profit increased 58.1% to 67.5 billion won.

Operating profit for the fourth quarter of last year was 29.5 billion won, a 36% increase compared to the same period last year. Sales and net profit were 552 billion won and 21.1 billion won, respectively.

Hanssem explained that B2B (business-to-business) sales decreased in remodeling businesses such as Rehouse, while B2C (business-to-consumer) sales, including online sales, increased. In the third quarter of this year, B2B division sales amounted to 96.3 billion won, down 15.4% year-on-year.

Hanssem stated that the expansion of the home economy market led to increased profitability in B2C sales, driving performance growth.

In the fourth quarter of last year, Hanssem's Rehouse business recorded a growth rate of 33.0% compared to the same period last year. The online business grew by 61.5%, and the offline furniture business grew by 34.5%, highlighting the growth trend in core B2C business sectors.

In particular, Rehouse's Style Package showed a 90% growth rate compared to the previous year. The number of direct construction packages also grew more than fourfold compared to the same period last year.

Furniture and household goods sales in the online sector recorded high growth of over 60%. All three core products?bedroom, living room, and study/children's room?performed well. The company added that strengthening competitiveness through the Hanssem Mall revamp and the Naemam Delivery service had an impact.

Hanssem expects the home furnishing industry to continue its steady growth this year. A Hanssem official said, "As demand for decorating one's own space increases and consumers place greater meaning on 'home as a space,' the home furnishing industry will continue to grow steadily. We will use these societal changes as an opportunity to expand our market share in the interior market and solidify our position as a leading company."