Swings to profit with revenue of KRW 485.9 billion and operating profit of KRW 13.0 billion
Profitability-focused strategy and stronger competitiveness of core products bear fruit
Hanssem disclosed that, in its preliminary earnings announcement for the first quarter of 2024 (on a consolidated basis), it recorded revenue of KRW 485.899 billion (up 3.5% YoY) and operating profit of KRW 12.995 billion (a turnaround to profit YoY).
On an operating-profit basis, this exceeded market expectations (KRW 6.9 billion as of May 9, according to FnGuide), and represents an improvement of KRW 28.7 billion compared with the same period a year earlier. Since recording an operating loss in the third quarter of 2022 amid the economic downturn and returning to profit in the second quarter of last year, the company has maintained a profitable trend for four consecutive quarters, with the margin of profit continuing to widen. Hanssem explained that this reflects the intended results of the profitability-focused business strategy and the efficient growth strategy centered on core products that it has pursued, achieved even amid an unfavorable market environment marked by a slump in housing-market transaction volumes and high interest rates.
Through strategic supply-chain management involving purchasing-cost reductions sustained since the fourth quarter of 2022, the first-quarter cost ratio improved by 2.1 percentage points compared with the same period last year, driving the continued profit, while optimizing price competitiveness by channel also drove the recovery in profitability. The analysis concluded that securing this profitability while also pursuing strategic investments—such as advancing the marketing mix centered on core products and improving cost effectiveness—proved effective.
By business segment, Rehaus is responding to changes in market demand with a sales strategy centered on partial construction work and individual products amid the ongoing slump in housing transactions. It is securing revenue from demand for home renovation without having to move, and expanding revenue by delivering greater value to customers through highly competitive core products such as kitchens, baths, and storage. In addition, the company is actively expanding its sales network to boost customer engagement, including through interior-design expos and open houses at newly built complexes.