E-Mart Operating Profit Jumps 46%, but Starbucks Posts KRW 45.3 Billion Loss

Standalone operating profit rose 46.3% to KRW 166 billion
Quarterly gross sales topped KRW 5 trillion for the first time
SCK Company posted an operating loss of KRW 45.3 billion
E-Mart 24 also posted a loss of KRW 2.9 billion

E-Mart improved profitability in its core businesses, including discount stores and Traders, in the third quarter of this year. However, weak performance at its subsidiaries, including a large operating loss at SCK Company, the operator of Starbucks in Korea, limited consolidated operating profit to just KRW 46.1 billion. SCK Company’s operating loss was nearly equal to E-Mart’s consolidated operating profit, highlighting the stark contrast between the performance of its core businesses and its subsidiaries.

Yonhap News Agency

E-Mart disclosed on November 11 that it recorded gross sales of KRW 5.104 trillion and operating profit of KRW 166 billion on a standalone basis in the third quarter of this year. These figures were up 11.1% and 46.3%, respectively, from the same period a year earlier. This was the first time quarterly gross sales had exceeded KRW 5 trillion. Standalone operating profit for the first three quarters of the year also rose 28.8% year on year to KRW 337.9 billion.

Among its businesses, the warehouse-style discount store Traders stood out for its growth. Third-quarter gross sales rose 16.6% to KRW 1.1668 trillion, while operating profit increased 40.5% to KRW 55.2 billion. Both sales and operating profit reached quarterly records. E-Mart Everyday also posted gross sales of KRW 399.5 billion and operating profit of KRW 11 billion, up 7.7% and 11.1%, respectively.

Operating profit from E-Mart’s core business reached KRW 166 billion, but consolidated operating profit, which includes the results of its subsidiaries, was just KRW 46.1 billion. In effect, weak performance at subsidiaries offset a substantial portion of the profits generated by the core business. E-Mart’s consolidated net sales in the third quarter were KRW 7.4919 trillion, an increase of just KRW 91.1 billion from the same period a year earlier. Consolidated operating profit was KRW 46.1 billion, KRW 119.9 billion lower than standalone operating profit of KRW 166 billion.

Among the subsidiaries, SCK Company’s weak performance stood out. SCK Company, which operates Starbucks in Korea, posted an operating loss of KRW 45.3 billion in the third quarter, nearly matching E-Mart’s consolidated operating profit of KRW 46.1 billion. E-Mart 24 also continued to post losses, recording an operating loss of KRW 2.9 billion. However, it reduced its loss by KRW 4.9 billion compared with the same period a year earlier.

SSG.COM improved its earnings by KRW 15.8 billion year on year through greater efficiency in product, membership and logistics operations. Josun Hotels & Resorts posted operating profit of KRW 22.6 billion, up 2.7%.

An E-Mart official said, “The competitiveness of our core business, which we have steadily strengthened, has expanded our customer base and driven both growth in scale and improved profitability. We will continue to pursue innovation in retail while expanding benefits that customers can experience firsthand, further solidifying our market leadership.”

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