Seoul: Emart Inc., South Korea's leading discount retailer, announced on Tuesday that its second-quarter net loss has narrowed compared to the previous year, attributing this improvement to effective cost-saving measures. The net loss for the three months ending June 30 was reduced to 31.4 billion won (US$22.6 million) from 111.9 billion won in the same period last year, as revealed in a regulatory filing by the company.
According to Yonhap News Agency, Emart reported an operating profit of 21.6 billion won, a significant turnaround from an operating loss of 34.6 billion won a year earlier. However, sales experienced a slight decline, decreasing by 0.2 percent to 7.03 trillion won from 7.05 trillion won over the cited period. A company spokesperson highlighted that consolidated purchases by Emart, its warehouse chain Emart Traders, and Everyday super supermarkets (SSMs) played a key role in reducing costs. Additionally, facility upgrades and an increased supply of quality products at reasonable prices contributed to sales growth at Emart Traders.
The quarterly results were further bolstered by higher equity gains from affiliates, including Starbucks Coffee Korea, Shinsegae Food, and the Emart24 convenience store chain. Notably, Starbucks Coffee Korea reported an operating profit of 40.3 billion won on sales of 795.5 billion won, with its store count in South Korea reaching 2,050. Emart, a subsidiary of Shinsegae Group, maintains a 67.5 percent stake in the coffee chain.
In the first half of 2025, Emart successfully swung to a net profit of 52.3 billion won from a net loss of 82.5 billion won in the same period last year. Furthermore, the operating profit surged to 180.9 billion won from 12.5 billion won, while sales remained steady at 14.25 trillion won.