Kolon Global Q1 Operating Profit 46.8 Billion KRW... 48% Increase YoY

[Asia Economy Reporter Ryu Tae-min] Kolon Global announced on the 11th through a preliminary earnings disclosure that its consolidated operating profit for the first quarter increased by 47.9% year-on-year to 46.8 billion KRW.

Sales amounted to 1.1029 trillion KRW, and net profit was 31.7 billion KRW, rising 41.1% and 98.9% respectively compared to the same period last year. On a separate basis, sales reached 970.6 billion KRW, up 25.3% from the previous year, with operating profit of 47.0 billion KRW (36.7%) and net profit of 33.3 billion KRW (69.4%).

Kolon Global explained that this was due not only to increased performance in the construction sector and higher BMW sales but also to the trading division turning profitable, resulting in balanced growth across the three main business divisions.

In the construction sector, Kolon Global stated that large-scale projects such as Suwon Gokbanjeong’s ‘Haneulchae First’ and Seongnam Sinheung’s ‘Haneulchae Landers One’ are progressing smoothly, improving sales and profitability in the housing and architecture divisions.

The construction sector’s order intake for the first quarter was 1.0757 trillion KRW, reaching 35% of the annual order target of 3.11 trillion KRW set at the beginning of the year. Based on enhanced technological competitiveness, Kolon Global consecutively secured large-scale projects such as the Ulsan Yaeum-dong apartment complex (171.5 billion KRW) and Gangneung Gyodong (112.7 billion KRW) in the housing sector, and the Sanghwa-ro three-dimensional project (129.1 billion KRW) in the civil engineering sector. Thanks to the strong new order intake, the current order backlog amounts to 9.5 trillion KRW, five times last year’s construction sector sales.

The distribution division, centered on BMW, recorded sales of 379.8 billion KRW, a 42.6% increase year-on-year, driven by strong imported car sales. Operating profit increased by 54.7% year-on-year due to higher sales of the BMW X series SUVs.

The trading division also contributed by turning profitable with an operating profit of 3.5 billion KRW in the first quarter. This is seen as the beginning of results from restructuring the business towards profitability. Kolon Global’s trading division recorded profits by eliminating inefficient businesses that were not generating income and driving performance through the exclusive distribution of home appliances such as robotic vacuum cleaners (Roborock).

With the inclusion of Auto Care Service Co., Ltd., acquired last November, subsidiary performance also increased significantly. Subsidiary sales in the first quarter were 132.3 billion KRW, up 125.5 billion KRW compared to the same period last year.