As the construction market continues to slow and uncertainty looms over the housing sales sector, South Korea's leading home furnishing companies, Hanssem and Hyundai Livart, reported similar trends in their second-quarter results. The stagnation in revenue appears to have been offset by cost reductions and restructuring efforts.
According to the furniture industry on August 11, both companies experienced a decline in sales but a significant increase in operating profit. Hanssem reported consolidated sales of 417.2 billion won and an operating profit of 11.3 billion won for the second quarter. While sales decreased by 9.2% compared to the same period last year (459.4 billion won), operating profit surged over 400% from 2.3 billion won, marking 13 consecutive quarters of profitability. However, net profit fell to 4.8 billion won, an 85.2% decrease from the previous year.
Hyundai Livart, which announced its results on August 4, showed a similar pattern. The company reported consolidated sales of 373.1 billion won for the second quarter, down 9.0% from 409.9 billion won a year earlier, but operating profit rose by 9.4% to 5.6 billion won from 5.1 billion won. Net profit saw a dramatic increase of 507.4%, reaching 3.7 billion won.
The improvement in Hanssem's performance was largely driven by its rehouse segment, which saw a 13% increase in sales year-on-year. This growth was attributed to rising demand for apartment transactions and renovations, particularly in key product categories such as kitchens, bathrooms, and storage solutions. In the home furnishing sector, sales of the storage furniture line 'Signature' increased by 12%, while the Swive sofa series, including 'Swive the Master,' saw a 46% rise in sales.
Notably, the growth of premium lines was significant. Combined sales of the premium kitchen brands 'Kitchen Bach' and 'Euro Kitchen' increased by 40% compared to the same period last year, and sales of the bathroom solution 'Easy Bath 5,' launched in February, surged by 80% in June compared to its first month of release.
Additionally, the company undertook restructuring efforts by closing inefficient stores and reorganizing distribution channels.
A Hanssem representative stated, "While external risks will persist in the second half of the year, we will consistently strengthen the competitiveness of our core products, enhance customer experiences through distribution channels, and elevate brand value through focused marketing to solidify our position as an industry leader."
Hyundai Livart's profit improvement was primarily driven by cost reductions and operational efficiencies. The company noted that the ongoing construction market slowdown has led to a decrease in the supply of built-in furniture, impacting sales. However, through efficient management, operating profit was slightly increased compared to the previous year.
There were notable differences across business segments. The B2B sector continued to grow, while the decline in built-in furniture supply affected overall sales. Its affiliate, Zinus, faced challenges in the mattress business, but production rates at overseas facilities in Indonesia, China, and Cambodia improved.
Hyundai Livart plans to accelerate its restructuring and business diversification efforts. The company aims to continue focusing on profitability through efficient management while actively pursuing new housing maintenance projects and B2B contracts to lay the groundwork for a sales rebound.
A Hyundai Livart representative commented, "We plan to actively pursue new housing maintenance projects and B2B contracts to continuously expand our sales."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.