Hyundai Glovis, 1Q Operating Profit 406.6 Billion KRW... Down 4.6% YoY

Hyundai Glovis announced on the 27th that it recorded sales of KRW 6.3008 trillion and an operating profit of KRW 406.6 billion in the first quarter of this year. Sales increased by 0.1% compared to the same period last year, but operating profit fell by 4.6%. Net profit for the period decreased by 2.9% to KRW 283.6 billion.

Looking at the performance by business segment, the logistics sector posted sales of KRW 2.1513 trillion and an operating profit of KRW 168 billion. Overall sales slightly decreased by 1.0% year-on-year due to a decline in container and air transport sales caused by market downturns. Operating profit increased by 41.2% due to a rise in global finished vehicle cargo volume and the impact of one-time costs.

The shipping business recorded sales of KRW 1.0088 trillion and an operating profit of KRW 105.6 billion, down 4.4% and 17.8% respectively from the previous year. Although the recovery in finished vehicle shipment volume and a high market rate environment continued, the decline in exchange rates was a significant factor.

In distribution, sales reached KRW 3.1407 trillion with an operating profit of KRW 133 billion. Sales slightly increased by 2.4% compared to the same period last year, while operating profit decreased by 25.7%.

Due to the nature of the logistics and shipping industries, it is impossible to avoid the impact of the KRW/USD exchange rate. Hyundai Glovis explained that the decline in exchange rates in the first quarter of this year affected the profitability of the Completely Knocked Down (CKD) business and was a major cause of the decrease in operating profit.

Hyundai Glovis expects that the cargo volume of the upstream finished vehicle industry will continue to increase, and that the improvement in ocean freight market conditions will persist for some time, combined with a rising exchange rate trend.

Lee Gyu-bok, CEO of Hyundai Glovis, said, "Despite an unstable management environment, we maintained solid performance by providing stable and efficient supply chain management and logistics services to our customers. We will strive to increase corporate value by actively promoting new businesses such as used battery recycling, smart logistics solutions, and mobility platforms, as well as our existing businesses."