Qualitative Growth with Six Consecutive Quarters in the Black
Strong Sales in Core Categories
Hanssem (CEO Kim Yu-jin) announced through its provisional results for the third quarter of 2024 (on a consolidated basis) that it posted revenue of KRW 454.1 billion (YoY -5.6%) and operating profit of KRW 7.3 billion (YoY +48.1%). Since returning to profitability in the second quarter of last year, the company has now recorded six consecutive quarters in the black.
Hanssem stated that although revenue declined slightly amid the economic downturn and the delayed recovery of consumer sentiment, it achieved qualitative growth by improving its cost ratio through supply chain optimization—an improvement of 1.2 percentage points year-on-year—along with higher operating profit. Since the second quarter, the company has been reflecting the unexpected 'TMON-WeMakePrice (TMEF) crisis' as a loss (KRW 2.9 billion in bad debt allowance for the relevant quarter), but this was resolved in the current quarter, and even greater improvement in profit is expected from the fourth quarter onward. While revenue decreased somewhat from the previous year due to the economic downturn and the delayed recovery of consumer sentiment, expectations for a revenue recovery are growing as sales have recently turned upward, driven by strong customer response to core products such as kitchens, storage, and hotel beds.
In particular, the fourth quarter is traditionally the peak season for the interior and furniture market, and Hanssem expects the full-fledged sales season for core products, including children's rooms, to arrive. The company also anticipates increased revenue from moving and wedding remodeling demand as well as customer-attracting effects from large-scale trade fairs.
By business division, Rehaus will carry out marketing to enhance brand aspiration, strengthen its mid-to-high-priced product lineup, provide customer consultation and design services, and reinforce the competitiveness of key building-material products. Home Furnishing plans to optimize product operations by channel—including offline stores, Hanssem Mall, and partner malls—concentrate on new product launches and campaign marketing for key seasonal products, and continue to expand revenue by targeting large-scale move-in households in the fourth quarter.
Hanssem is the only operator in Korea's interior market building out a 'remodeling value chain,' establishing a nationwide sales/logistics/construction system, online and offline distribution channels, and a space-proposal system that will innovate the interior market. Both its Rehaus 'Style Edition,' which remodels the entire home space, and its partial-renovation products—kitchens, baths, storage, and more—for those who want to renovate their homes without moving, possess unrivaled competitiveness.