Production Base Damaged by Heaviest Snowfall in 117 Years
Missed Back-to-School Demand; Restoration Completed in March
Accelerating Hygiene Products Business with Renewed Efforts
Strengthening Online Strategy and Restructuring Sales Teams
Prep
Morning Glory, a stationery company that recently announced its earnings, is preparing for a turnaround next year after a year of compounded challenges. The company faced a frozen stationery market due to a declining school-age population, and on top of that, suffered avalanche damage at the end of last year, causing it to miss the peak back-to-school season earlier this year. After completing the restoration of its production base, Morning Glory has begun reorganizing. In particular, the company plans to accelerate its new hygiene products business, leveraging its strong brand power and organizational restructuring.
According to the Financial Supervisory Service's electronic disclosure system on October 16, Morning Glory's sales for the 2025 fiscal year (July 2024 to June 2025) were recorded at 38.1 billion won, a 6.3% decrease from the previous year's 40.7 billion won. During the same period, operating losses increased by 57.6% to 800 million won, and net losses rose by 31.3% to 700 million won, widening the deficit. Morning Glory cited the overall decline in stationery demand caused by the shrinking school-age population as the main reason for the worsening performance.
However, there was another, less publicized internal issue. The production base suffered direct damage from an unexpected natural disaster. On November 27 of last year, the Seoul metropolitan area experienced the heaviest November snowfall in 117 years. The accumulation of wet snow caused collapses in various locations. Morning Glory's Hwaseong Production Logistics Center in Gyeonggi Province also sustained damage to half of its facilities due to the avalanche, preventing the company from meeting demand during the back-to-school peak season (January to March) of this year.
The accident's impact was directly reflected in the company's financial statements. New construction costs incurred during the restoration process were added to the loss items, and only 70% of the cost of goods was compensated. Uncompensated items such as logistics center rental fees, logistics costs, and demolition and installation expenses were additional costs during the construction period. These painful losses further exacerbated the company's poor performance. A Morning Glory representative stated, "The final restoration was completed around mid-March, and both production and logistics are now operating normally," adding, "During the restoration process, we further strengthened employee safety training and facility inspection systems."
Morning Glory is determined to use this crisis as a springboard for a "re-leap" in 2026. The company is seeking new growth drivers by expanding into new businesses that can create synergies beyond traditional stationery. In particular, Morning Glory is focusing on targeting the hygiene products market, which it entered last December with the launch of its "Honest Premium Tissue." Although hygiene product sales currently account for only about 5% of total sales, the company expects it will take at least five years for the products to become established in the market and aims to gain traction starting next year. Morning Glory plans to further segment its existing hygiene product lineup, such as the Art Edition and Bium Series, and develop new hygiene products to broaden consumer touchpoints.
With strong growth in online sales, Morning Glory is also strengthening its online distribution strategy. The share of online sales, including through Coupang, increased by 34% year-on-year to account for 12% of total sales. After expanding its online team in October last year, Morning Glory plans to launch various promotions leveraging its brand power. A company representative said, "Among the roughly 200 domestic tissue companies, only a handful are recognized brands by consumers," adding, "Morning Glory will target the main hygiene product consumer groups in their 40s and 50s by leveraging its nationwide brand recognition." The analysis is that people in their 40s and 50s, who grew up using Morning Glory stationery, are less resistant to the brand.
The company has also laid the foundation for new business initiatives through internal restructuring. Along with securing online talent, Morning Glory implemented voluntary retirement and reorganized its domestic sales organization from four teams to three. In particular, the existing product planning team was integrated and reorganized into the product planning division within Sales Team 2, which is responsible for hygiene products, thereby strengthening the drive for new business. By considering sales strategies from the product planning stage, the company aims to reduce inventory risks, streamline work procedures, and accelerate the launch of new products.
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