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(LEAD) E-Mart remains in red in Q2 amid sluggish consumption, high inflation

15:44 August 14, 2023

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SEOUL, Aug. 14 (Yonhap) -- E-Mart Inc., South Korea's leading retailer, on Monday reported that its net loss expanded in the second quarter from a year earlier due to a slump in consumer sentiment and high inflation.

Its net loss for the three months ending in June was 103.2 billion won (US$77.4 million) on a consolidated basis, up from a loss of 63.1 billion won during the same period last year, the retail giant said in a regulatory filing.

Its operating loss rose to 53 billion won in the April-June period from a loss of 12.3 billion won a year earlier, while sales inched up 1.7 percent to 7.27 trillion won.

The company said its weak performance can be blamed on a slump in the domestic market amid high inflation and rate hikes.

Its discount store business raised its revenue to 3.94 trillion won in the second quarter, down 0.5 percent on-year, and extended its operating loss to 25.8 billion won from 19.1 billion won. Its net loss also increased to 79 billion won from 43.2 billion won over the same period.

The company's e-commerce affiliates -- SSG.com and Gmarket -- saw their sales go up 0.9 percent and 13.3 percent on-year to 427 billion won and 292.5 billion won, respectively.

SSG.com's operating loss decreased 22.2 billion won to 18.3 billion won, and Gmarket's operating loss contracted 6.9 billion won to 11.3 billion won.

Sales of SCK Company, the operator of Starbucks in South Korea, climbed 6.2 percent on-year to 707 billion won, and sales of convenience store chain emart24 jumped 7.2 percent on-year to 574.4 billion won.

In contrast, SCK Company's operating profit dropped 11.1 billion won to 36.4 billion won and emart24's operating profit went down 900 million won to 3.4 billion won.

Sales of the retailer's accommodations business, Josun Hotels & Resorts Co., shot up 18.9 percent on-year to 138.5 percent.

The corporate logo of E-Mart (Yonhap)



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