Duzon Bizon Reports Q2 Operating Profit of 20.4 Billion KRW, Up 16% YoY

[Asia Economy Reporter Hyunseok Yoo] Duzon Bizon announced on the 27th that it achieved consolidated sales of 80.6 billion KRW and operating profit of 20.4 billion KRW in the second quarter. Compared to the same period last year, sales increased by 10.2% and operating profit by 16.2%. The operating profit margin was 25.6%.

The company explained that this proves the stability and growth potential of its business despite the impact of COVID-19. Internally, some projects in the existing ERP business were delayed, and externally, economic uncertainty increased causing delays in IT investments by companies. Nevertheless, all business sectors continued to perform steadily, centered on the company’s core businesses. This marks the 27th consecutive quarter of year-on-year increases in sales and operating profit.

From the second quarter, the cloud business reflected applications for the 2021 non-face-to-face service voucher support project, achieving a growth rate of 60.6% compared to the same period last year. Although some projects in the extended ERP business were delayed, product competitiveness was strengthened through the application of new technologies, resulting in a 16.2% growth compared to the same period last year. The groupware business also supported performance with a 28.0% growth.

The company expects a bright performance outlook for the second half of the year. The new product ‘Amaranth 10,’ which integrates Standard ERP and groupware, was launched in May and secured pre-orders worth 10 billion KRW, and the effect of the new product launch is expected to continue. New sales and profit generation are also anticipated through the expansion of the accounts receivable factoring service, which started its main service in July with participation from Mirae Asset Capital and Welcome Financial Group. Furthermore, if the COVID-19 situation improves in the second half, it is expected to positively impact the acceleration of ERP project progress and an increase in new orders.

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 such as the launch of Amaranth 10 is expected to become full-fledged, enabling us to continue stable sales and profit generation.”