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E-Mart-Q4 earnings
E-Mart Q4 net doubles on increased profitability of affiliates
SEOUL, Feb. 14 (Yonhap) -- E-Mart Inc. on Tuesday said its net income in the fourth quarter more than doubled from a year earlier on improved profitability of its affiliates.
Net income came to 148.7 billion won (US$ 117.3 million) on a consolidated basis in the last three months of 2022, compared with 66.9 billion won during the same period of 2021, the discount retailer said in a regulatory filing.
Operating profit came to 22.3 billion won in the October-December period last year, down 71.2 percent. Sales went up 9 percent to 7.5 trillion won.
E-Mart attributed such an increase in the quarterly net income to improved profitability of its affiliates, especially its specialty stores, which helped boost top line figures in the year end.
For the full year of 2022, the retailer's net income fell 36.1 percent to 1.02 trillion won. Operating profit declined 54.2 percent, while sales increased 17.7 percent.
"Our yearly operating profit fell as profitability of Starbucks worsened as the local currency weakened against the U.S. dollar and increased coffee bean prices. Expenses spent to recall Starbucks' summer giveaway bags were also reflected," the company said in a statement.
E-Mart spent around 43.6 billion won last year to recall Starbucks' "summer carry bags" after the giveaway bags were found to include a toxic chemical substance.
By business, operating profit from E-Mart stores inched down by 2.6 percent on-year to 258.9 billion won.
In contrast, the retailer's accommodations business Josun Hotels & Resorts Co. and convenience store chain emart24 swung to the black last year.
E-Mart, owned by Shinsegae Group, is a major discount retailer in South Korea. It also operates big-box stores E-Mart Traders and the emart24 convenience store chain.
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