MLO Surpasses 60 Billion Won in Sales... "Aiming to Become a Global Software Company This Year"

Last Year's Sales 63.2 Billion KRW... 7.8% Increase YoY
Secured Major Corporate Clients in Defense, Parts, and Materials
First Year of Overseas Expansion Through Integrated SCM SaaS Platform

Emro, an AI-based supply chain management software company, achieved its highest-ever sales last year.

Emro announced on the 25th that it recorded sales of 63.2 billion KRW last year on a consolidated financial statement basis, marking a 7.8% increase compared to the previous year.

In the fourth quarter of last year, sales reached 17.4 billion KRW, up 18.7% year-on-year, setting a new quarterly record. Technology-based sales in the fourth quarter increased by 2.2% from the previous quarter to 5.4 billion KRW. License royalties and cloud service usage fees rose by 9.7% and 13.5% respectively from the previous quarter, reaching 2.6 billion KRW and 1.3 billion KRW.

With the global economic downturn and supply chain restructuring increasing the need for systematic supply chain management systems, Emro secured leading companies in various industries such as defense, parts and materials, secondary batteries, steel, and renewable energy as new clients last year. The demand from large corporations aiming to proactively respond to supply chain risks by expanding supply chain management software to subsidiaries and overseas branches also contributed to sales growth.

Operating profit last year was 4.7 billion KRW, down 28.1% from the previous year. This was due to increased investments for overseas expansion, including development costs for the integrated supply chain management (SCM) SaaS platform and hiring personnel for overseas operations. A net loss of 26.5 billion KRW was recorded due to a 29.3 billion KRW derivative financial instrument valuation loss related to convertible bonds (CB) and bonds with warrants (BW) issued in May last year. This is a simple accounting loss with no actual cash outflow.

Emro is making this year the first year of overseas expansion and is accelerating the final development of the integrated SCM SaaS platform together with Samsung SDS and o9 Solutions. The company plans to launch the integrated SCM SaaS platform this year and begin full-scale sales and marketing centered on the United States, preparing to capture the global SCM software market.

Emro will also continue to strengthen its AI software lineup that enhances the efficiency and accuracy of purchasing tasks. In January this year, Emro participated in CES 2024 held in Las Vegas, USA, together with Samsung SDS. They introduced the cloud-based purchasing supply chain management solution SRM SaaS. They demonstrated the Auto-PO (purchase automation) function, which uses AI technology to recommend the optimal purchasing type for each item and automates the purchasing process from purchase request to quotation review, contract, and order.

An Emro official said, "This year will be a crucial turning point for Emro to leap into a global software company," and added, "We will do our best to seize the opportunity in the rapidly growing global SCM software market together with Samsung SDS and o9 Solutions."