K Car posted a revenue of 575.9 billion won in the third quarter of 2022, marking a 17.5% increase compared to the same period last year, according to preliminary financial performance based on K-IFRS statements.
The revenue growth was driven by robust retail sales. The revenue from K Car’s e-commerce service, ‘Home Service for Buying Cars,’ reached 239.4 billion won, a 23.6% increase from the same period last year. Revenue from direct stores across the country also grew by 16.9% to 287 billion won.
However, operating profit decreased by 12.9% year-over-year to 16 billion won due to external economic factors such as rising interest rates and inflation pressures. Nonetheless, in a quarter-on-quarter comparison, it managed to achieve a 40.7% increase thanks to efforts to improve profit margins. The share of car purchases through its own C2B (Customer-to-Business) used car acquisition channel, ‘Home Service for Selling Cars,’ increased by 2 percentage points compared to the previous quarter, leading to improved profitability.
K Car plans to continue its growth by expanding its market presence in the fourth quarter. On the 1st of this month, it opened its first e-commerce dedicated store, ‘K Car Home Service Mega Center,’ in Icheon, Gyeonggi Province, where it aims to enhance quality competitiveness by conducting quality checks and product evaluations all in one place.
On the 25th of last month, K Car opened the ‘K Car Auction Sejong Auction House’ in the Chungcheong region, becoming the first among the domestic big three auction companies to secure demand outside the capital area. On the same day, the ‘Pohang Direct Store,’ which had been closed due to the impact of ‘Hinnamno,’ resumed operations after completing recovery work.
Jung In-guk, CEO of K Car, stated, “Despite the uncertain external environment, we have achieved a recovery in profitability in the first half of this year, which had declined earlier. We will overcome this crisis through the capabilities we have built up and focus on providing differentiated experiences to customers while improving profitability to enhance corporate value, aiming for long-term growth in any environment.”
K Car, listed on the KOSPI market in October 2021, is the largest direct used car platform company in South Korea, continuing its operations for the 22nd year. It operates a direct purchase and sale system, showcasing its e-commerce service, ‘Home Service for Buying Cars,’ based on a network of 47 branches and one mega center nationwide (as of November 2022).
The ‘Home Service for Buying Cars,’ introduced as the industry’s first service in 2015, has grown annually and accounted for 48.4% of total retail sales in the third quarter of 2022. This corresponds to approximately 81% market share in the domestic used car e-commerce market, solidifying its position as a leader in the automotive e-commerce sector.
Written by Jang Sang-jin daedusj@autodiary.kr