[Asia Economy Reporter Hyunseok Yoo] Duzon Bizon announced on the 27th through its Q1 earnings disclosure that it achieved consolidated sales of 75.8 billion KRW and operating profit of 17.5 billion KRW. Compared to the same period last year, sales increased by 6.5% and operating profit by 7.4%, with an operating profit margin of 23.1%.
Duzon Bizon continued its trend of increasing sales and operating profit compared to the same period last year for 26 consecutive quarters. Despite market uncertainties, all business sectors centered on the company’s core businesses demonstrated stability and growth, resulting in favorable performance.
The cloud business showed a growth rate of 53.8% compared to the same period last year. With the expansion of non-face-to-face work environments, WEHAGO sales surged by 812%, driving cloud business revenue. The extended ERP business grew by 5.7% year-over-year, strengthened by the application of new technologies such as DEWS (development automation tools), enhancing product competitiveness. The groupware business also supported performance with 19.1% growth.
However, as COVID-19 prolonged, some internal projects were delayed. Externally, government support projects aimed at market revitalization experienced schedule delays due to process changes and postponements, causing growth rates to be somewhat sluggish compared to previous years.
The company expects stable growth to lead to improved performance, forecasting that double-digit growth seen in previous years will be maintained.
From Q2, applications for the 2021 non-face-to-face service voucher support project will be officially approved, which is expected to boost WEHAGO’s sales growth. Additionally, if the COVID-19 situation improves and IT investment sentiment recovers, ERP project progress acceleration and increased new orders are anticipated to have a positive impact.
Moreover, the company is preparing to launch a new product, ‘Amaranth 10,’ which integrates standard ERP and groupware, and expects new sales and profit generation from new business developments such as the expansion of services in the accounts receivable securitization business, which began generating sales from Q1.
A Duzon Bizon official said, “It is positive that all core business areas of the company, including cloud, ERP, and groupware, grew evenly while overcoming the diversifying external environment,” adding, “The growth momentum of existing businesses remains valid, and the sales contribution effect of new businesses is expected to accelerate, enabling stable sales and profit generation this year.”
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