EcoMarketing, Disappointing Performance in New Business Investment Last Year

[Asia Economy Reporter Hyungsoo Park] It appears that Eco Marketing's profitability deteriorated last year.

NH Investment & Securities estimated that Eco Marketing recorded an operating profit margin of 14.2% last year. This figure is only half of the average 31.5% over the previous three years.

Researcher Hwajung Lee of NH Investment & Securities explained, "Last year, the company acquired the new brand Andar and continued investing in its own D2C platform. Although there was external growth, profitability worsened due to increased marketing expenses."

She added, "It is estimated that in the fourth quarter of last year, on a consolidated basis, sales reached 79.8 billion KRW and operating profit was 11 billion KRW. Compared to the same period last year, sales increased by 90%, but operating profit decreased by about 9%."

She analyzed, "Andar and Mongje led the strong sales," and "the number of subscribers to the D2C platform continues to increase, but meaningful performance contributions seem to require more time."

Furthermore, she predicted, "When the marketing expense burden is eased through stabilization of the new brand and platform, the visibility of performance will expand."