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Eland Group posted first-half operating profit exceeding 231.6 billion won ($141 million), its best first-half result in a decade, driven by a stable business portfolio across its fashion and food service divisions.
The group announced Friday that its consolidated first-half sales reached 2.84 trillion won and operating profit came in at 231.6 billion won, up 4 percent and 48 percent, respectively, from the same period a year earlier. Net profit for the period improved by 111.4 billion won year-on-year, swinging to a positive figure.
"Both cumulative sales and net profit grew together in the first half, and operating profit in particular reached its best first-half level in a decade," a company official said. "The structural improvements made across our key business units and brands are now fully reflected in our earnings."
Breaking down results by segment, the fashion division saw sales and operating profit rise 9 percent and 29 percent, respectively, from a year earlier, with top-line growth and profitability improving in tandem. New Balance and New Balance Kids maintained steady momentum, while the group's own major brands — Spao, Mixxo and Who.A.U — also posted simultaneous gains in sales and operating profit.
Mixxo, a women's SPA (specialty store retailer of private-label apparel) brand, stood out with first-half cumulative sales up 34 percent year-on-year. The brand attributed the growth to a strengthened lineup of trendy office wear and everyday basics targeting women in their 20s to 40s, along with a more agile product management system built to respond quickly to customer demand.
The food service division extended its growth streak to six consecutive years. Eland Eats recorded first-half cumulative sales up 11 percent and net profit for the period up 50 percent from a year earlier. Ashley Queens posted double-digit growth in both sales and operating profit, while Pizza Mall, Deli by Ashley and Roun contributed to the expansion with sales rising 36 percent, 35 percent and 43 percent, respectively.
All three — Pizza Mall, Deli by Ashley and Roun — are emerging as next-generation brands each on track for annual sales of around 50 billion won. Pizza Mall is expanding its single-item specialty store model, Deli by Ashley is leveraging data-driven operations, and Roun is capitalizing on growing demand for health-conscious dining.
Eland Retail, which oversees the group's retail segment, also showed marked improvement. First-half transaction volume and operating profit grew 3 percent and 243 percent, respectively, from a year earlier. Net profit for the period remained in positive territory through both the first and second quarters, marking the first time the retail arm has posted a cumulative first-half net profit since the COVID-19 pandemic. The results reflected investment in regular merchandise refreshes and new brand recruitment at key stores, expansion of the off-price store format NC Picks, and a sustained focus on profitability-driven structural reform.
"Our strategy of focus and selectivity is delivering results — earnings and profitability are growing while net debt is declining, improving our overall financial structure," the company official said. "We will continue to sharpen competitiveness in our core business areas while maintaining our drive for management efficiency."
spa@heraldcorp.com
