Retail
Hypermarket chain E-Mart posts first annual loss in 2023
It is the first time it has logged a deficit since its spinoff from Shinsegae in 2011; the construction unit also hit the earnings
By Feb 14, 2024 (Gmt+09:00)
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South Korea’s top supermarket chain E-Mart Inc. announced on Thursday that it provisionally recorded a consolidated operating loss of 46.9 billion won ($35.1 million) last year, turning into a loss-making company.
This is the first time that E-Mart has posted an annual operating loss since it spun off from Shinsegae Group in 2011 to form a separate entity.
E-mart's annual sales for the past year increased by 0.5% on-year to 29.47 trillion won ($22 billion), but it swung to the red with a net loss of 187.5 billion won ($140.4 million). It is the first annual net loss since 2011.
According to the company, the main cause for the losses is the slow earnings of Shinsegae Engineering & Construction Co (Shinsegae E&C).
Shinsegae E&C recorded a loss of 187.8 billion won ($140.6 million), an increase of 175.7 billion won ($131.6 million) compared to the previous year, due to rising construction costs, poor performance in real estate after a sluggish market and the reflection of expected future losses.
E-mart's annual revenue on an unconsolidated basis reached 16.55 trillion won ($12.4 billion), a 6.9% increase from the previous year. Operating profit decreased by 27.4% to 188 billion won ($140.8 million).
Write to Sun A Lee at suna@hankyung.com
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