MRO Surpasses 20 Billion KRW in Q3 Sales... Operating Profit Hits Record High of 4.3 Billion KRW

Emro, an AI-based supply chain management software company, has surpassed 20 billion KRW in quarterly sales.

On the 7th, Emro announced that it recorded ▲sales of 23.2 billion KRW ▲operating profit of 4.3 billion KRW ▲net profit of 6.1 billion KRW for the third quarter of 2024 based on consolidated financial statements. Sales and operating profit increased by 41% and 238.4% respectively compared to the same period last year, setting a record for the highest quarterly performance. The operating profit margin improved by 11 percentage points from the same period last year to 18.9%, indicating enhanced profitability.

Emro showed balanced sales growth across all business sectors in the third quarter, supported by the expanded supply of the supply chain management software 'SMARTsuite v10.0', upgraded and released in the first half of the year, and the cloud-based supply chain management service 'emroCloud'. Additional project orders from large clients secured in the second quarter also contributed.

As a result, software license sales reached 2.4 billion KRW and cloud usage fees 1.4 billion KRW in the third quarter, increasing by 34.4% and 34.5% respectively compared to the same period last year. Technology fees, which are steadily generated annually from existing clients, recorded 3.3 billion KRW, up 42.7%. The technology-based sales, combining software licenses, cloud usage fees, and technology fees, totaled 7.3 billion KRW, an increase of 38.1%.

In the fourth quarter, Emro is conducting integrated purchasing system construction and overseas subsidiary expansion projects with companies from various fields. Additional adoption of AI solutions and system advancement by existing clients are also anticipated. With the growing demand for cloud transition in purchasing operations, the company expects steady increases in the adoption of 'emroCloud' by enterprises.

Global expansion through the global SRM SaaS solution 'Caidentia' is also progressing smoothly. Recently, Emro signed its first contract with a local electronics manufacturing company in the North American market through Samsung SDS. By strengthening online and offline sales and marketing activities, Emro plans to expand its sales pipeline across various industries including manufacturing, automotive, and furniture.

An Emro representative said, "As a strategy to respond to the prolonged global economic downturn, more companies are showing interest in direct purchasing solutions. Through active research and development (R&D), we will advance direct purchasing solutions such as target material cost management and cost control, quickly responding to the demands of both domestic and global corporate clients to secure market leadership."