Kolon Global reported double-digit growth in both revenue and operating profit for the third quarter of this year, driven by improved cost efficiency in its construction sector and expanded performance in its leisure and asset management (AM) businesses.
On November 12, Kolon Global announced that its consolidated revenue for the third quarter reached 747.8 billion won, with an operating profit of 34.2 billion won and a net profit of 9.7 billion won. Revenue and operating profit increased by 23.1% and 23.5%, respectively, compared to the same period last year.
The improvement in performance was influenced by the recovery of profitability in the construction sector, expansion of major project processes, and the effects of the merger in the leisure and AM sectors.
The construction sector recorded revenue of 624.5 billion won and an operating profit of 31.6 billion won in the third quarter, marking increases of 17.1% and 21.0%, respectively, from the previous year.
Notably, the cost ratio in the construction sector decreased to 87.4%, down from 89.0% during the same period last year. After peaking at 96.8% in the fourth quarter of last year, the cost ratio has continued to decline, falling to 89.5% in the first quarter and 87.7% in the second quarter.
Expansion of processes at key high-tech sites, including Korean Air's engine maintenance facility and Tokyo Electron Korea, also contributed to the revenue increase.
New orders continued to flow in, with Kolon Global securing 792.1 billion won in new contracts during the third quarter, bringing the cumulative total for the year to 1.78 trillion won.
Major contracts included the Ansan Hyundai 1st Apartment project worth 218.3 billion won, the Magang-dong District 3 housing redevelopment project at 103.5 billion won, the Samsung Electronics Pyeongtaek P5 auxiliary building construction at 84.1 billion won, and the Hanam Gyosan environmental basic facility project at 37.4 billion won.
The growth in the leisure and AM sectors was particularly notable. Reflecting the merger effects of LSI and MOD, the third-quarter revenue reached 79.4 billion won, with an operating profit of 6.7 billion won. Compared to the same period last year, revenue surged by 398%, and operating profit increased by 646%.
Financial liquidity also improved, with Kolon Global's cash and cash equivalents at 318.9 billion won at the end of the third quarter, an increase of 117.7 billion won from the previous quarter.
With the construction sector's cost ratio improving for three consecutive quarters and the non-construction sector's contribution to performance expanding, there is interest in whether this trend of profitability improvement can continue.
A Kolon Global representative stated, "As the expansion of key project processes in the construction sector and cost ratio improvements continue, combined with the merger effects in the leisure and AM sectors, both revenue and operating profit have grown together. We plan to strengthen competitiveness across business divisions and continue to expand a stable growth foundation through profitability-focused operations."
* This article has been translated by AI.
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