Listed companies, which declined in sales last year, net profit 18% ↑

[이뉴스투데이 이상헌 기자] As a result of tightening management of companies listed in the securities market due to the Corona 19 incident last year, net profits increased by nearly 20% despite the shrinking sales.

On the 4th, the Korea Exchange and the Korea Listed Companies Association announced that the result of an analysis of the consolidated financial statements of 597 companies listed on the securities market for December settlement (excluding the financial industry, etc.) revealed the result.

Last year, the sales of listed companies decreased by 3.70% to 1961.763 billion won. On the other hand, net profit was 63,453.3 billion won, an 18.15% increase from the previous year. Operating profit also increased by 3.20% to 107.3 trillion won.

The operating margin (operating profit versus sales) and net margin were 5.48% and 3.24%, respectively, up 0.37 percentage points and 0.60 percentage points from the previous year. Even with such a decrease in sales, operating profit and net profit have increased because companies have tightened their belts for survival in the face of the Corona 19 pandemic.

In particular, except for Samsung Electronics, sales (1724 trillion 269.3 billion won) and operating profit (71 trillion 4133 billion won) decreased by 4.53% and 6.41%, respectively, but net profit (37.45 trillion won) increased by 15.89% in a difficult business environment. Tightening mode’ stood out.

Kyobo Securities Research Center Director Kim Hyung-ryul analyzed, “In the special situation of Corona 19, companies focused on cost reduction and securing a safety margin to protect profitability rather than sales activities.”

“Up to 2019, corporate performance was considerably sluggish due to the impact of the US-China trade dispute, but fortunately in the last year’s Corona 19 shock, various policies to overcome the economic downturn were reinforced, and companies showed hope for profitability recovery from the second half of the year. “He added.

However, the impact of Corona 19 has resulted in differentiation of earnings by industry. Sales increased in five industries: pharmaceuticals (+13.48%), medical precision (+11.01%), food and beverages (+5.94%), electrical and electronics (+4.32%), and telecommunications (+2.71%).

On the other hand, transportation warehouse (-16.40%), chemicals (-12.28%), steel and metals (-8.22%), distribution (-6.30%), electric gas (-6.18%), paper and wood (-6.15%), and services (- 4.97%), textiles and apparel (-4.56%), non-metallic minerals (-3.02%), transportation equipment (-2.35%), machinery (-1.67%), construction (-1.31%), and 12 sectors saw their sales decline.

At the same time, the gap in profitability widened. Food and beverages (+132.79%), medical precision (+120.23%), pharmaceuticals (+61.90%), electrical and electronics (+56.89%), communications (+38.27%), paper and wood (+30.99%), textiles (+23.36) %), etc., net profit increased by more than double digits.

However, machinery (-93.19%), chemicals (-59.36%), transportation equipment (-57.55%), steel and metals (-38.61%), construction (-27.27%), services (-20.16%), and non-metallic minerals (-9.21) %) and distribution (-1.74%) saw a sharp decrease in net profit.

Jeong Yong-taek, head of the IBK Investment & Securities Research Center, diagnosed, “Due to Corona 19, some industries have achieved near-disaster results, and the difference between export-oriented companies and domestic-oriented companies is also clearly revealed.”

Of the companies subject to this analysis, 418 companies (70.02%) recorded net income surplus, and 179 companies (29.98%) recorded losses. 81 companies turned to the red, more than 68 companies. The consolidated debt-to-equity ratio of companies listed on the securities market was 115.45%, up 2.60 percentage points from the previous year.

Consolidated operating profit and net income of 42 companies in the financial sector increased 11.80% and 8.40% to 33,289.4 billion won and 24,634.3 billion won, respectively. In terms of operating profit by industry, securities (+48.36%), insurance (+40.13%), other (+16.29%) and financial holdings (1.05%) increased, but banks (-5.21%) decreased. Net profit also increased for insurance (+35.02%), securities (+30.96%), and others (+6.49%), but decreased for banks (-4.67%) and financial holdings (-0.29%).

Companies listed on the KOSDAQ market generally outperformed those listed on the securities market. Last year’s consolidated operating profit of 1003 KOSDAQ subsidiaries, compiled by the exchange and the KOSDAQ Association, increased by 12.10% year-on-year to 11,3716 trillion won.

Sales (197 trillion 1403 billion won) and net profit (4,671.7 trillion won) also increased by 3.44% and 3.97%, respectively. Accordingly, the operating margin (5.77%) and net margin (2.37%) also increased by 0.45 percentage points and 0.01 percentage points, respectively.

Last year, the debt-to-equity ratio was 109.06%, up 5.05 percentage points from a year ago. Of the 1003 companies, 594 (59.22%) recorded a surplus and 409 (40.78%) recorded a deficit. There were 104 companies that turned to the surplus and 155 companies that turned to the deficit.

Meanwhile, 118 KONEX-listed companies increased 13.2% in sales on an individual or separate basis to 2,881.8 billion won, and operating profit turned to a surplus of 52.1 billion won. Net profit was a deficit of 104 billion won, but the deficit narrowed compared to the previous year. Of the 118, 56 were in net profit surplus and 62 were in the red.

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