MLO Reports Record High Q3 Cumulative Sales of 45.8 Billion Won

Emro, the No. 1 AI-based supply chain management software company in Korea, achieved its highest-ever performance in the third quarter.

Emro announced on the 6th that its cumulative sales for the third quarter of this year reached 45.8 billion KRW based on consolidated financial statements, a 4.1% increase compared to the same period last year. The cumulative operating profit for the third quarter was 3.57 billion KRW, down 22.1% from the same period last year.

A company official explained, "Despite worsening external conditions such as decreased corporate investment due to increased market uncertainty, sales increased," adding, "Profits declined due to proactive investments for overseas market expansion, including the development of an integrated supply chain management (SCM) SaaS platform."

Third-quarter sales amounted to 16.5 billion KRW, a 6.7% increase compared to the same period last year. Emro has been steadily setting new records for both quarterly and cumulative performance. With the expansion of global supply chain risks, corporate demand for systematic supply chain management is growing. The number of new customers adopting Emro’s supply chain management software and AI software is steadily increasing. The cumulative number of customers has surpassed 520 companies. The cumulative software license sales for the third quarter recorded 6.25 billion KRW, a 4.2% increase compared to the same period last year. The technology-based sales, which include software licenses, cloud service fees, and technical fees, also increased by 1.5% year-on-year to 16.9 billion KRW on a cumulative third-quarter basis.

Due to derivative financial instrument valuation losses related to convertible bonds (CB) and bonds with warrants (BW) issued in May this year, Emro recorded a net loss of 21.48 billion KRW on a cumulative third-quarter basis. The derivative financial instrument valuation losses, totaling 28.9 billion KRW cumulatively, arose from price differences at the time of CB and BW issuance caused by stock price increases. This is a simple accounting loss with no actual cash outflow, and excluding this, the cumulative net profit for the third quarter was 7.42 billion KRW, a 52.4% increase compared to the same period last year.

Emro holds a substantial order backlog, indicating sufficient growth potential going forward. The company is expanding its customer base by introducing various software products such as the big data analytics software "Smart Dashboard" and the "Payment Linked Solution" to respond to the revised Subcontracting Act.

Preparations for overseas market entry are also progressing smoothly. Emro is collaborating with Samsung SDS, o9Solutions, and others while establishing strategies for entering the U.S. market, including sales and marketing, aiming to launch an integrated SCM SaaS platform early next year.

An Emro official said, "Despite the unpredictable business environment caused by increased geopolitical risks from recent Middle East conflicts, sustained high U.S. interest rates, and expanding inflation leading to global uncertainties, demand for supply chain management software will continue to grow." He added, "Emro will continue its steady growth by expanding its business into the global market based on its solid leadership in the domestic market."