Emart's Q4 net loss widens on-year due to one-off costs, says retailer
Published: 11 Feb. 2025, 18:29
Emart, Korea's leading discount retailer, said Tuesday its fourth-quarter net loss widened from a year earlier due to one-off costs.
In the three months ended Dec. 31, net losses deepened to 596.3 billion won ($410 million) from 107.1 billion won in the year-ago period, the company said in a regulatory filing.
"A hefty provision worth 213.2 billion won for ordinary wages following a recent court ruling and voluntary retirement programs was reflected in the bottom line," a company spokesperson said by phone.
In December, the Supreme Court ruled that regular periodic bonuses should be included in ordinary wages, prompting many local businesses to put aside more provisions for wages and severance pay for their workers.
The company said its operating Q4 loss narrowed to 77.1 billion won from 85.5 billion won a year ago.
Sales fell 1.4 percent to 7.24 trillion won from 7.35 trillion won during the same period.
For the whole of 2024, net losses widened to 573.4 billion won from 187.5 billion won a year earlier.
However, the company shifted to an operating profit of 47.1 billion won from an operating loss of 46.9 billion won in 2023.
"Investment gains from its property development projects and shareholding gains from its affiliates, such as Starbucks Korea, helped the operating result," the spokesperson said.
Starbucks Korea posted an operating profit of 190.8 billion won on sales of 3.1 trillion won last year. The number of its outlets exceeded 2,000 in Korea last year.
Emart, owned by Shinsegae Group, holds a 67.5 percent stake in the coffee chain here.
The company's annual sales dropped 1.5 percent on-year to 29 trillion won in 2024.
The company has said it will work to boost its operating profit to 1 trillion in 2027 on annual sales of 34 trillion won, by focusing on its mainstay businesses.
To enhance shareholders value, it plans to cancel half its treasury shares, or 2 percent of its outstanding stocks, between 2025 and 2026.
On top of the discount store chain, Emart also operates the big-box store Emart Traders and the Emart24 convenience store chain.
Yonhap
In the three months ended Dec. 31, net losses deepened to 596.3 billion won ($410 million) from 107.1 billion won in the year-ago period, the company said in a regulatory filing.
"A hefty provision worth 213.2 billion won for ordinary wages following a recent court ruling and voluntary retirement programs was reflected in the bottom line," a company spokesperson said by phone.
In December, the Supreme Court ruled that regular periodic bonuses should be included in ordinary wages, prompting many local businesses to put aside more provisions for wages and severance pay for their workers.
The company said its operating Q4 loss narrowed to 77.1 billion won from 85.5 billion won a year ago.
Sales fell 1.4 percent to 7.24 trillion won from 7.35 trillion won during the same period.
For the whole of 2024, net losses widened to 573.4 billion won from 187.5 billion won a year earlier.
However, the company shifted to an operating profit of 47.1 billion won from an operating loss of 46.9 billion won in 2023.
"Investment gains from its property development projects and shareholding gains from its affiliates, such as Starbucks Korea, helped the operating result," the spokesperson said.
Starbucks Korea posted an operating profit of 190.8 billion won on sales of 3.1 trillion won last year. The number of its outlets exceeded 2,000 in Korea last year.
Emart, owned by Shinsegae Group, holds a 67.5 percent stake in the coffee chain here.
The company's annual sales dropped 1.5 percent on-year to 29 trillion won in 2024.
The company has said it will work to boost its operating profit to 1 trillion in 2027 on annual sales of 34 trillion won, by focusing on its mainstay businesses.
To enhance shareholders value, it plans to cancel half its treasury shares, or 2 percent of its outstanding stocks, between 2025 and 2026.
On top of the discount store chain, Emart also operates the big-box store Emart Traders and the Emart24 convenience store chain.
Yonhap
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)