Coway Co., South Korea’s leading water and air purifier making and rental firm, posted record high earnings in the first quarter thanks to the brisk rental business both at home and abroad.
Coway announced in a regulatory filing on Monday that it raked in 131.3 billion won ($122 million) in operating profit in the January to March period, up 8.6 percent from the same period of last year. This is the highest-ever quarterly operating profit for the company. Sales rose 6.2 percent to 647.8 billion won and net profit jumped 26.2 percent to 95.2 billion won.
Market experts believed the sound performance was driven by the strong rental business at home and abroad, robust overseas business and increased customers for its relatively new home care service. Coway said it has rented out 460,000 units of home appliances in the first quarter, the highest first-quarter rental sales.
The strong sales in the overseas business amounting to 112.3 billion won, up 14.7 percent from a year ago, are especially notable. The quarterly sales from the Malaysian operation exceeded 60 billion won for the first time, and sales from the U.S. market increased 15.4 percent on year to 17.6 billion won.
The company plans to release a new home dry-cleaning machine that can also act as an air purifier and dehumidifier in the second quarter. It will focus to expand the clothing care service business and reinforce its sales network, said an official from the company.
Shares of Coway finished Wednesday up 6.4 percent at 93,100 won.
By Shin Soo-hyun and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]