|Achieve record-high operating performance in 2018||2019-02-14|
- Up 7.6% and 10.0% year-on-year in sales and operating profit, respectively
Coway achieved record-high operating performances in 2018 by realizing KRW 2.707 trillion in sales, up 7.6% year-on-year, and KRW 519.8 billion, up 10.0%, on a consolidated basis of K-IFRS financial statements.
4Q sales and operating profit were KRW 711.7 billion, up 8.9% year-on-year, and KRW 128.8 billion, up
20.3%, respectively. Particularly, 4Q sales first surpassed KRW 700 billion on a quarterly basis.
▲ The Largest Rental Sales at Home and Abroad
Rental sales at home and abroad reached 1.91 million units, an increase of 13.1% from the previous year, abroad in 2018. Overseas rental sales soared 50.5% year-on-year to 455 thousand units.
Domestic sales growth was attributable to the increase of rental accounts. The initiation of rental sales of FWSS unleashed sharp increase of customer accounts. Overseas sales increase resulted mainly from continuous growth of Malaysia subsidiary and the U.S. subsidiary.
Net rental account growth in 2018 reached 580 thousand, 70.9% from the previous year. As a result, the number of customer accounts at the end of 2018 was 7.01 million – 5.90 million in Korea and 1.11 million in the world. Coway set the target of the number of accounts at 7.63 million in 2019.
▲ Rapid Growth in Overseas Business
Overseas sales increased 32.5% year-on-year to KRW 544.2 billion in 2018 thanks to sales increase of new products and continuous growth of local subsidiaries.
Sales from Malaysia subsidiary first surpassed KRW 300 billion in 2018 by achieving KRW 353.4 billion, up 70.3% year-on-year, largest ever in its history.
Sales from the U.S. subsidiary also increased 23.8% from the previous year to KRW 80.5 billion on the strength of door-to-door sales growth and increasing sales of air purifiers.
▲ The Largest Rental Sales of Mattress
Rental sales of mattress increased 15.2% year-on-year to 146 thousand units in 2018, the largest ever in its history. The number of mattress rental accounts also rose by 23.2% to 441 thousand and sales revenue was KRW 182.9 billion, an increase of 10.5%.
▣ Business Plan in 2019
Coway set its sales and operating profit targets in 2019 at KRW 2.978 trillion, up 10.0% year-on-year, and KRW 551.0 billion, up 6.0%, respectively, on a consolidated basis of K-IFRS financial statements.
To achieve the targets, Coway will focus on enhancing product competitiveness, differentiating service quality, strengthening marketing communication, pursuing continuous growth in overseas business, and developing new overseas markets.
Hae-sun Lee, the CEO, said, “We proved our growth potential by achieving remarkable growth in all business sectors despite unfavorable global economic environment in 2018. This year, we will take another leap toward a global player under the key words of enhancing trust and innovation, preemptively responding to market changes, and charting the course of global growth”
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