E-Land Retail Reports First Quarter Operating Profit of 22.1 Billion Won

E-Land Retail has successfully returned to profitability in the first quarter of this year. This marks the first quarterly net profit since the COVID-19 pandemic, attributed to improved store efficiency and enhanced profitability in its food business.

On May 29, E-Land Retail reported consolidated sales of 384.6 billion won for the first quarter, a 2.5% increase compared to the same period last year. The operating profit reached 22.1 billion won, reflecting a significant improvement of 19.6 billion won year-on-year.

The company also reported a net profit of 2.2 billion won for the quarter, an improvement of 34.1 billion won compared to the previous year. E-Land Retail stated, "This is the first time we have achieved a quarterly net profit since the pandemic began."

The improvement in performance is attributed to structural enhancements and operational efficiencies. The company has focused on increasing the efficiency of urban outlet stores, such as NC, NewCore, and 2001 Outlet, while strengthening the competitiveness of its food business centered around Kim's Club. Additionally, attracting new content to key commercial locations and renewing store layouts are expected to positively impact performance in the second half of the year.

Previously, E-Land Retail faced profit pressures due to one-time costs, structural changes, and high-interest burdens until last year. However, the company noted that this year has seen a clear recovery in core business competitiveness alongside a reduction in financial burdens.

An E-Land Retail representative remarked, "Achieving a quarterly net profit for the first time since the pandemic indicates that our structural improvements are beginning to show in the numbers. We will focus on profitability-centered operations rather than aggressive expansion to strengthen our stable growth foundation."

In January, E-Land Group introduced a business group (BG) system for its retail and food service sectors. The previously integrated retail division has been restructured into a Retail BG and a Food BG, establishing leadership tailored to each business's characteristics. This aims to enhance accountability in response to the rapidly changing retail environment.