MLO Reports Q3 Revenue of 23.2 Billion KRW... Quarterly Sales Surpass 20 Billion KRW for the First Time Ever

Emro, an AI-based supply chain management software company, surpassed 20 billion KRW in quarterly sales for the first time ever, demonstrating remarkable growth despite the economic downturn.

On the 7th, Emro announced that it recorded 23.2 billion KRW in sales, 4.4 billion KRW in operating profit, and 6.2 billion KRW in net profit for the third quarter on a consolidated financial statement basis. Sales and operating profit increased by 41% and 238.4%, respectively, compared to the same period last year. This set a new record for the highest quarterly performance. The operating profit margin rose by 11 percentage points (P) to 18.9% from 7.9% in the same period last year, showing significant improvement in profitability.

On a cumulative basis for the third quarter, sales reached 57 billion KRW and operating profit 6.2 billion KRW, increasing by 24.6% and 73.2%, respectively, compared to the same period last year. Emro is one step closer to achieving record-high sales for six consecutive years.

Emro’s sales growth was driven 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 projects secured from major clients acquired in the first half contributed to stable growth.

In the third quarter, software license sales reached 2.5 billion KRW and cloud usage fees 1.5 billion KRW, 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, also increased by 42.7% year-on-year to 3.4 billion KRW. The technology-based sales, combining software licenses, cloud usage fees, and technology fees, totaled 7.3 billion KRW, up 38.1% from the same period last year.

In the fourth quarter of this year, Emro is conducting integrated purchasing system construction and overseas subsidiary expansion projects with leading companies across various fields. Additional AI solution adoption and system advancement for existing clients are also forthcoming. As demand for cloud transition in purchasing operations expands, the adoption of ‘emroCloud’ by companies continues to grow steadily, and Emro’s growth momentum is expected to continue.

Emro’s overseas expansion through the global SRM SaaS solution ‘Caidentia’ is also progressing smoothly. Recently, it signed its first contract with a local electronics manufacturing company in the North American market through Samsung SDS. Emro is strengthening online and offline sales and marketing activities while expanding its sales pipeline across various industries such as manufacturing, automotive, and furniture.

An Emro official stated, “As a strategy to respond to the prolonged global economic recession, more companies are showing interest in direct-procurement solutions,” adding, “The related market is also growing rapidly.” The official continued, “Emro is advancing direct-procurement solutions such as target material cost management and cost management through active research and development,” and added, “We will quickly respond to the demands of both domestic and overseas corporate clients and continue to lead the market.”