E-Mart (139480)

[Business Overview] E-mart is a core affiliate of the Shinsegae Group, operating a general retail business across a range of distribution channels including hypermarkets (E-mart, Traders Wholesale Club), supermarkets (E-mart Everyday), convenience stores (E-mart24), an online channel (SSG.COM), and complex shopping malls (Starfield Market). Its main business areas include agricultural, fishery, and livestock foods, processed goods, daily necessities, household/kitchen goods, and apparel, and it secures price competitiveness through its private brands (PB) such as No Brand and Peacock. Based on 2024 consolidated revenue, the distribution segment accounted for the largest share at about 73.6%, with food and beverage (Shinsegae Food, etc.) at 16.5%, construction (Shinsegae E&C, etc.) at 3.5%, and hotels/leisure (Josun Hotel, etc.) at 2.4%. It maintains the No. 1 market share in Korea's domestic hypermarket market, with families—particularly families with children in their 30s and 40s—as its main customer base. [Competitive Strengths] E-mart has established an integrated purchasing system across its three business units—E-mart, Traders, and E-mart Everyday—to strengthen cost competitiveness. In addition, it is increasing customer dwell time and enhancing the competitiveness of its offline stores through store renewals and conversions to mall-type formats such as Starfield Market. Along with the product competitiveness of its private brands (PB) such as No Brand and Peacock, the creation of new revenue models through the expansion of its quick-commerce and retail-media businesses is also cited as a strength. [Financial Performance] E-mart's revenue rose slightly from KRW 29,332.4 billion in 2022 to KRW 29,472.2 billion in 2023, but showed a slight downward trend to KRW 29,020.9 billion in 2024 and KRW 28,970.4 billion in 2025. Operating profit swung from KRW 135.7 billion in 2022 to a loss of KRW 46.9 billion in 2023, then returned to a profit of KRW 47.1 billion in 2024, and improved significantly to KRW 322.5 billion in 2025, a sharp 584.8% increase year on year. Accordingly, the operating margin recovered from a loss in 2023 to 0.16% in 2024 and 1.11% in 2025. Most recently, in the first quarter of 2026, it posted revenue of KRW 7,123.4 billion and operating profit of KRW 178.3 billion, with operating profit up 11.9% year on year, continuing a positive earnings trend. [Financial Health] Looking at financial-health indicators, ROE fell from 7.47% in 2022 to -1.36% in 2023 and -4.38% in 2024, worsening capital efficiency, but improved as it returned to positive territory at 1.80% in 2025. The debt-to-equity ratio remained relatively high at 146.24% in 2022, 141.75% in 2023, 159.31% in 2024, and 144.61% in 2025, though it improved slightly in 2025. The current ratio improved to 58.83% in 2022, 61.58% in 2023, and 96.53% in 2024, before declining again to 61.85% in 2025, indicating overall low liquidity. [Outlook] Amid the growth of online shopping and the slump in offline retail, E-mart is focusing on strengthening the competitiveness of its core business. It plans to pursue both profitability and growth by securing price competitiveness through integrated purchasing, innovating its spaces through store renewals and mall-type conversions, expanding private brands and ultra-low-price products, and growing its quick-commerce and retail-media businesses. It also intends to lay a foundation for medium- to long-term growth and respond to changes in the retail environment by expanding its overseas business and adopting new technologies such as AI and robots.