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(LEAD) Aekyung Industrial Q1 net halves due to coronavirus

All News 16:22 May 07, 2020

(ATTN: RECASTS headline, lead; UPDATES throughout)

SEOUL, May 7 (Yonhap) -- Aekyung Industrial Co. said Thursday its net profit more than halved in the first quarter of the year due to the fallout of the coronavirus outbreak.

Net income came to 9.1 billion won (US$7.5 million) in the January-March period, down 50.3 percent from a year earlier, the South Korean household goods and cosmetics maker said in a regulatory filing.

Sales declined 10.3 percent on-year to 160.4 billion won, with operating income tumbling 45.3 percent to 12.6 billion won.

The operating profit was 23.7 percent lower than the market consensus compiled by Yonhap Infomax, the financial news arm of Yonhap News Agency. The median estimate for net profit was not available.

Aekyung Industrial attributed the poor first-quarter result to the negative impact of the coronavirus pandemic on sales of its cosmetics products at local duty-free ships and shipments to China, its key overseas market.

Operating income from the cosmetics segment plunged nearly 62 percent on-year to 6.9 billion won, with sales sinking about 28 percent to 64.8 billion won.

It household goods business, however, posted operating income of 5.6 billion won, up 17 percent from a year earlier. Sales climbed 7.3 percent on-year to 95.6 billion won.

Aekyung Industrial said the household goods division got a boost from strong sales of hand sanitizers that hit the market in the fourth quarter of last year.

This photo, provided by Aekyung Industrial Co. on May 7, 2020, shows its logo. (PHOTO NOT FOR SALE) (Yonhap)


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