[Asia Economy Reporter Hyunseok Yoo] MP Group MP Group, which formed a new management team last year, announced on the 18th that it recorded a net profit of 15.5 billion KRW in the first quarter of this year. The company also explained that operating losses decreased by 43% compared to the same period last year, indicating the effects of business normalization.
According to MP Group's first quarter quarterly report, on a separate basis, sales amounted to 8.8 billion KRW with a net profit of 15.5 billion KRW, turning to black. Operating losses were about 1 billion KRW, down approximately 43% from 1.9 billion KRW in the same period last year.
Although sales decreased compared to the same period last year, net profit turned positive from a deficit of 2.1 billion KRW in the previous year to a net profit of 15.5 billion KRW. The company stated that the reduction in inefficient promotional events and the closure of low-efficiency directly operated stores led to a decrease in sales in the first quarter compared to the previous year, and efforts to reduce selling and administrative expenses helped reduce operating losses. The net profit of 15.5 billion KRW was partly due to non-operating income from the sale of its subsidiary MP Hangang.
MP Group, which began business normalization by recruiting new management in December last year, recently appointed Lee Jong-young, former head of Kyochon F&B, as the new CEO. In April, the company acquired Daesan Pork, a pork processing company with annual sales of 72.6 billion KRW, aiming to diversify its business. Once the merger with Daesan Pork is completed, MP Group's annual sales are expected to exceed 150 billion KRW.
First, MP Group's core pizza business division plans to minimize vacant commercial areas by rapidly improving its structure and opening more than 50 delivery-only stores within the year. Additionally, based on the competitiveness of the newly acquired Daesan Pork, the company is preparing to launch a pork specialty brand. Along with this, leveraging its overseas business experience, MP Group plans to expand its overseas business post-COVID-19, based on its existing network of about 100 stores in China.
In February, MP Group secured funds for business normalization by selling its 27.5% stake in its subsidiary MP Hangang for 29.5 billion KRW.
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