Shinsegae International Co. (031430) reported preliminary full-year revenue of 1.11 trillion won ($767 million) from continuing operations excluding JAJU, up 3.4% year-on-year, the company disclosed Sunday. The company posted an operating loss of 11.5 billion won for the period, swinging to red.
"The operating loss shown in the disclosure reflects the classification of the JAJU business sale as discontinued operations under Korean International Financial Reporting Standards (K-IFRS)," a company spokesperson said. "This is a temporary effect and will be largely offset starting from this year's results."
The operating loss for the full year and fourth quarter resulted from excluding revenue and operating profit of the JAJU business, which was transferred to Shinsegae Casa last month, the company explained.
Including the JAJU segment, revenue reached 1.32 trillion won, up 1.1% year-on-year, while operating profit plunged 94% to 1.6 billion won. For the fourth quarter on a consolidated basis, revenue from continuing operations excluding JAJU rose 5.6% year-on-year to 344.3 billion won, with an operating loss of 2.8 billion won. Fourth-quarter operating results improved 8.1% year-on-year and 36% quarter-on-quarter, signaling a rebound.
Cosmetics Division Posts Record Sales
The cosmetics division achieved record revenue of 455 billion won last year, up 9.7% year-on-year despite the consumer spending slump. For the first time since launching its beauty business, the company exceeded 110 billion won in quarterly sales across all four quarters.
In the fashion division, domestic women's and men's apparel sales turned positive year-on-year starting January, after declining last year. Imported fashion brands continued solid growth with double-digit revenue increases.
Global Expansion Plans
Shinsegae International plans to maximize profitability and secure core capabilities for future growth through global business expansion, mergers and acquisitions, and growth-oriented organizational innovation this year.
For global operations, the company will aggressively expand distribution networks across Europe, the United States, Japan, China, and Southeast Asia, led by proven beauty brands including Yunjac, Vidivici, and Amuse. The company will also actively pursue M&A and equity investments in high-potential fashion and cosmetics brands.
Shareholder Returns
The company announced a dividend of 400 won per share for fiscal 2024, unchanged from the previous year. Shinsegae International plans to cancel an additional 357,000 treasury shares this month, part of the 1.07 million shares (approximately 3% of total equity) repurchased in the first half of 2024.
"Despite difficult market conditions last year, we continued investing in growth through global market development, rebranding, and securing new brand distribution rights," a company spokesperson said. "Based on the growth roadmap established this year, we will achieve both short-term performance improvement and mid-to-long-term growth to enhance corporate value."