Unicem Achieves 5.9 Billion KRW Operating Profit in 2Q, Up 116% YoY... "Increased Supply of Leather for Handbags"

[Asia Economy Reporter Yoo Hyun-seok] Unichem announced on the 17th through a public disclosure that its operating profit for the second quarter of this year, based on consolidated financial statements, reached 5.9 billion KRW, marking a 116.3% increase compared to the same period last year. During the same period, sales and net profit recorded 36.3 billion KRW and 4.7 billion KRW, respectively. On a cumulative basis for the first half of the year, operating profit reached 8 billion KRW, and net profit was 6.2 billion KRW.

A company official stated, “Sales increased in the second quarter due to a rise in leather supply for luxury handbags,” adding, “Once the automation facilities at the leather production plant are completed, product margins are expected to improve significantly, enhancing profitability.”

Unichem is a leather specialist company that manufactures and supplies leather for automobile seats and luxury handbags overseas. Leather for handbags, which had sluggish supply due to the impact of COVID-19, is showing signs of recovery thanks to strong global sales of luxury handbags. Unichem currently manufactures and supplies handbag leather for overseas luxury brands such as Coach, Tumi, Kate Spade, and Marc Jacobs.

Additionally, Unichem supplies leather for automobile seats to Hyundai Motor Company and Kia Motors. Supply for European export SUV models is expected to expand starting in the second half of the year.

A company representative said, “With increased leather supply and profitability expansion due to automation facilities in the second half, we expect to achieve the highest annual performance,” and added, “The golf course operation business, promoted through our subsidiary Unigolf & Resort, is progressing smoothly with the goal of opening a new golf course in the second half of next year.”