Duzon Bizon Reports Q4 Revenue of 84.8 Billion KRW and Operating Profit of 16 Billion KRW

[Asia Economy Reporter Hyungsoo Park] Duzon Bizon announced on the 27th that it achieved consolidated sales of 84.8 billion KRW and operating profit of 16 billion KRW in the fourth quarter of last year. Both sales and operating profit decreased compared to the same period last year.

For the full year, consolidated sales reached 318.7 billion KRW, setting a new annual record. Operating profit was 71.2 billion KRW, down from the previous year.

The company explained that the base effect from the high growth in the fourth quarter of 2020, when government-supported projects were concentrated, had an impact. While launching new products including 'Amaranth 10', delays in order receipt occurred during the transition from existing sales to new product sales.

Operating profit was affected by delays in large-scale projects due to external factors amid the COVID-19 situation. Additional costs were incurred due to project delays, and accounting treatments such as setting loss compensation reserves were reflected accordingly.

This year, based on experience in executing large ERP projects, the company expects to improve product completeness and sees more ERP sales opportunities. It anticipates that growth rates will recover as the COVID-19 situation improves and postponed contracts are signed.

A company official said, "Sales increased due to the launch of the Amaranth 10 new product last year and the market expansion of the cloud business centered on WEHAGO," but added, "the results were somewhat unsatisfactory compared to market expectations." He continued, "We will seek a performance rebound through strengthening new businesses and concretizing global expansion strategies."

In new businesses, the accounts receivable factoring business based on WEHAGO, which started services with participants such as Mirae Asset Capital, Welcome Savings Bank, and Korea Investment Savings Bank, is expected to establish itself in the market. In cooperation with Shinhan Bank, a strategic investor, the company will also discover new revenue models in the corporate digital finance market.

The company is also formulating globalization strategies by recruiting external experts with strengths in mergers and acquisitions (M&A), investment, and investor relations (IR). It plans to enter overseas markets through M&A of similar foreign companies in partnership with global private equity firms such as Bain Capital. Having completed a world-class business platform lineup, the company expects success in overseas markets as well.

A Duzon Bizon official said, "We will focus on strengthening global capabilities necessary for Duzon Bizon's sustainable growth and securing future growth engines for the company." He added, "The growth momentum of existing businesses remains valid, and the sales contribution effects of new businesses such as Amaranth 10 and accounts receivable factoring will also be in full swing," forecasting a performance rebound this year.