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(2nd LD) Emart 2019 net halves on one-off costs

All News 15:15 February 13, 2020

(ATTN: ADDS Starbucks Korea 2019 results in last 4 paras)

SEOUL, Feb. 13 (Yonhap) -- Emart Inc., South Korea's largest discount store chain by sales, on Thursday reported a 53 percent on-year slump in net profit last year due to increased one-off costs.

Net profit for the whole of 2019 plunged to 223.8 billion won (US$189.5 million) from 478.6 billion won a year earlier, the company said in a statement.

"Increased corporate taxes and marketing costs cut into the annual business results amid an economic slowdown," a company spokesperson said.

(2nd LD) Emart 2019 net halves on one-off costs - 1

Operating profit plunged 67 percent on-year to 150.7 billion won last year from 462.8 billion won. But sales rose 12 percent to 19.06 trillion won from 17.05 trillion won over the same period, it said.

In 2020, Emart aims to achieve 21 trillion won in sales by expanding its network of outlets, on which it will spend 845 billion won.

Meanwhile, Starbucks Korea, which is 50 percent owned by Emart, posted a 19 percent on-year jump in net profit to 132.8 billion won in 2019 from 112 billion won a year earlier.

The remaining 50 percent stake of Starbucks Korea is controlled by its U.S. parent Starbucks.

Starbucks Korea reported an operating profit of 175 billion won last year, up 23 percent from 143 billion won a year ago. Sales also climbed 23 percent to 1.87 trillion won from 1.52 trillion won during the cited period.

Starbucks entered Korea in 1999 and currently operates 1,380 stores in Asia's fourth-biggest economy.

kyongae.choi@yna.co.kr
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