TS Trillion Sees Operating Profit Soar 15-Fold in H1... Distribution Restructuring Delivers Strong Results

TS Trillion (317240) announced on August 4 that, thanks to the restructuring of its distribution channels, its operating profit for the first half of this year surged more than 15 times compared to the same period last year, achieving a turnaround in performance.

According to the company’s provisional standalone results for the first half, revenue reached 15.14156 billion won, up 18% compared to the same period last year. Operating profit skyrocketed by 1,511% to 1.183 billion won, while net profit surged by approximately 1.6 billion won year-on-year to 636 million won, successfully returning to profitability.

The company attributed this improvement primarily to the restructuring of its distribution channels with a focus on profitability. By reducing the proportion of home shopping and military supply channels, which incurred high commissions and fixed costs, and instead focusing on expanding general retail partners and online sales channels, the company significantly enhanced its profitability.

In fact, home shopping sales decreased by 31.4% compared to the same period last year, and military supply sales also declined by 27.5%. On the other hand, sales through general retail partners, such as Olive Young (joined in November last year) and Daiso (joined in January this year), increased by 71.7%, and Smart Store sales rose by 67%, driving the company’s performance growth.

The company assessed that by shifting its sales structure to focus on high-margin distribution channels, it achieved both top-line growth and improved profitability at the same time.

Industry insiders analyzed that, even amid a downturn in domestic consumption that has led to sluggish results for consumer goods companies, TS Trillion has achieved meaningful results through business restructuring focused on profitability. They evaluated that the company succeeded in strengthening its profit-generating capacity, rather than merely expanding its scale.

An industry official said, "The fact that operating profit increased more than 15-fold and net profit turned positive means the company’s profit structure has normalized," adding, "If global market expansion and new business momentum are added in the second half, annual performance improvement as well as a revaluation of corporate value may be possible."

This performance is significant in that it demonstrates the company’s profitability-focused transformation, as its strategy to reduce low-profit distribution channels and shift sales toward online and general retail partners delivered tangible results.

This content was produced with the assistance of AI translation services.