A pop-up event for AceBed's Heritz line at Hyundai Department Store's Trade Center branch [AceBed]
A pop-up event for AceBed's Heritz line at Hyundai Department Store's Trade Center branch [AceBed]

AceBed posted a slight decline in operating profit in the second quarter despite strong sales growth, as higher selling and administrative expenses weighed on profitability.

According to AceBed's semiannual report released Tuesday, the company's consolidated operating profit for the second quarter came in at 16.6 billion won ($11.4 million), down 1.7% from a year earlier.

Sales for the same period rose 10.9% year-on-year to 84.8 billion won, driven by higher average selling prices for its bed products. Increases in raw material costs and selling and administrative expenses eroded profitability, however.

Net profit for the period fell 1.4% year-on-year to 22.4 billion won.

On a cumulative first-half basis, operating profit moved higher. First-half sales reached 169.8 billion won and operating profit came in at 29.4 billion won, up 7.6% and 1.4%, respectively, from a year earlier.

The company's core bed segment continued to grow. First-half bed sales reached approximately 151.6 billion won, up 7.2% year-on-year, accounting for about 90% of total revenue. Furniture sales rose 11.1% from the same period last year to approximately 18.2 billion won.

Average selling prices for bed products also rose. The average domestic unit price for beds in the first half of this year was 2.014 million won, up from the full-year average of 1.932 million won last year. The company said the increase reflected fluctuations in raw material costs and exchange rates.


boo@heraldcorp.com