Hyundai Livart has reported disappointing results for the second quarter of this year, impacted by a prolonged downturn in the construction market. Analysts suggest that the company's heavy reliance on built-in furniture sales has hindered its performance.
In a public disclosure on August 4, Hyundai Livart announced that its consolidated revenue for the second quarter reached 373.1 billion won, a 9.0% decrease compared to the same period last year. During the same timeframe, operating profit rose by 9.4% to 5.6 billion won, while net profit surged by 507.4% to 3.8 billion won.
The primary reason for the poor performance is attributed to a decline in the supply of built-in furniture due to the ongoing slump in the housing and construction market. The overall construction industry has been affected by a decrease in apartment occupancy rates and delays in construction starts.
Within the furniture industry, Hyundai Livart's business structure, which has a relatively high proportion of built-in furniture sales for new apartments, has exacerbated the decline in performance compared to competitors. The sharp drop in apartment supply from construction companies has significantly impacted the company's B2B (business-to-business) segment.
Hyundai Livart plans to accelerate its restructuring and business diversification efforts. The company aims to strengthen its fundamentals through efficient management focused on profitability while actively pursuing new housing maintenance projects and B2B contracts to lay the groundwork for revenue recovery.
A Hyundai Livart representative stated, "The ongoing construction market recession has led to a reduction in the supply of built-in furniture, resulting in decreased sales. However, we are committed to maintaining profitability through effective cost management and efficient operations." The representative added, "We plan to actively pursue new housing maintenance projects and B2B contracts to continuously expand our sales."
* This article has been translated by AI.
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