Upgraded stores and promo events boost Emart earnings

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Upgraded stores and promo events boost Emart earnings

Published: 14 Nov. 2024, 18:11

This photo, provided by Emart. shows an upgraded Emart store named Starfield Market Jukjeon, in Yongin, 41 kilometers south of Seoul. [EMART]

Emart, Korea's leading discount store chain, said Thursday its third quarter net profit jumped had more than fivefold from a year earlier on increased sales and equity gains from affiliates.

Net profit for the three-month period soared to 105.4 billion won ($75 million) from the 20.1 billion won logged a year ago, the company said in a regulatory filing.

“The company focused on strengthening the competitiveness of its mainstay discount store business by upgrading outlets and holding a series of promotional events to attract customers, which helped improve the bottom line,” a company spokesperson said by phone.

Shareholding gains from affiliates such as Starbucks Korea also buoyed the quarterly results, he added.

SCK Company, which operates Starbucks Korea, saw its operating profit jump 33 percent on year to 66.4 billion won in the third quarter.

Emart's operating profit jumped 43 percent to 111.7 billion won in the third quarter from 77.9 billion won a year ago, but sales fell 2.6 percent to 7.5 trillion won, from 7.7 trillion won, over the cited period.

In the fourth quarter, Emart said it would continue to strengthen price competitiveness to bring customers to its offline outlets while beefing up high-end product lineups on its online platforms such as SSG.com.

From January to September, the company swung to a net profit of 22.9 billion won from a net loss of 80.4 billion won during the same period of last year, the filing said.

Operating profit more than tripled to 124.2 billion won in the first nine months from 38.6 billion won a year earlier. Sales fell 1.6 percent to 21.77 trillion won from 22.12 trillion won.

Yonhap