Kolon Global, "Will Achieve Annual Sales of 4.6373 Trillion Won"

Kolon Global Songdo Okjeon Scenery

[Asia Economy Reporter Ryu Tae-min] Kolon Global has set its sales target for this year at 4.6373 trillion KRW, leveraging its core industries of housing and construction.

On the 3rd, Kolon Global announced in its business performance forecast that its consolidated sales target for this year is as stated above. This is 18% higher than last year's provisional results. The company projected an operating profit of 196.5 billion KRW, an 11.4% increase compared to last year's provisional results. On a separate basis, sales are expected to reach 4.0951 trillion KRW, and operating profit 196 billion KRW (+7.7% year-on-year), both representing a 7.7% increase from the previous year.

Kolon Global cited the expansion of housing and construction business performance as the basis for this outlook. The new orders for this year are projected to increase by 12.5% from the previous year to 3.11 trillion KRW.

To achieve this, the company has been accelerating new orders since the beginning of the year. In January, it secured a 172.6 billion KRW contract for the Daegu Hyomok 1-dong reconstruction project, and in February, it won a 97.2 billion KRW contract for the construction of a multi-family housing complex in Incheon Songdo Central District 1, continuing aggressive order-taking activities in the housing sector.

Additionally, the company expects that its imported car distribution business, modular construction business, and renewable energy power generation business will also contribute to achieving this year's performance goals. On the 19th of last month, Kolon Global signed an EPC contract worth 47.8 billion KRW for the construction of a wind power plant in Hasami-dong, Taebaek City, in the renewable energy wind power sector. Furthermore, it has been making future-oriented investments by acquiring a subsidiary engaged in the automobile business and establishing a subsidiary for the modular construction business.

Kolon Global expressed confidence that both sales and operating profit will grow this year as the performance of its subsidiaries improves. A Kolon Global official explained, “With the full reflection of the performance of Auto Care Service, which has Volvo and Audi sales corporations as subsidiaries, the operating profit of subsidiaries is also expected to turn positive (+).”