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Retail Trade

E-Mart, Inc.

Company Background

E-mart belongs to South Korea's Shinsegae group and operates a chain of hypermarkets. It had 154 stores across the country as of June 2015. The company maintains its leading market share in the domestic hypermarket sector, outstripping its competitors like Lotte Mart and Homeplus. Shinsegae group's high-profile businesses includes Shinsegae Chosun Hotel, which runs upscale Westin Chosun hotels.

 

In 2011, E-mart was created through the spinoff of Shinsegae's hypermarket division. For a while, it tried advancing overseas, as shown by its aggressive store openings in China beginning in the mid-2000s. But it is now downsizing its store network there and focusing on domestic expansion.

 

South Korea's business environment for large-scale retailers has become increasingly severe since the government enacted regulations meant to protect small retailers. Under the rules, big-box retailers are required to close at midnight and on public holidays as well as refrain from opening new stores near smaller retailers.

 

E-mart has reacted by setting up emart everyday supermarkets in a small retail trading zone.

 

The group's consolidated subsidiaries include hotel and duty-free shop divisions. E-mart intends to obtain a license for operating duty-free shops and ride an expected wave of tourism.

Business Summary

E-Mart, Inc. distributes and sells products through online shopping, specialty stores and supermarkets. It offers groceries, general household goods, consumer electronics, shoes, sports, pet, beauty and healthcare products. The company was founded in 1993 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue19,062.87B16,346.36M
Gross Profit4,094.31B3,510.86M
Operating income150,570.50M129.11M
Income before tax208,259.21M178.58M
Net income210,361.24M180.38M
EBITDA1,033.17B885.94M
Diluted EPS7,620.246.53
Dividends Per Share2,0001.71
Total Assets21,094.75B18,240.96M
Total liabilities11,665.73B10,087.54M
Total equity8,030.96B6,944.49M
Operating cash flow790,348.85M677.72M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 13,639.99B 14,615.06B 15,514.90B 17,049.07B 19,062.87B
Gross Profit 3,404.29B 3,702.43B 3,949.99B 4,116.96B 4,094.31B
Operating income 503,290.00M 568,461.36M 584,195.80M 470,068.00M 150,570.50M
Income before tax 684,534.44M 506,754.59M 799,735.82M 584,966.73M 208,259.21M
Net income 454,709.17M 354,621.63M 582,513.91M 419,260.29M 210,361.24M
EBITDA 937,121.00M 1,019.74B 1,054.28B 997,799.00M 1,033.17B
Diluted EPS 16,319 13,172.42 21,621.53 15,668 7,620.24
Dividends Per Share 1,500 1,500 1,750 2,000 2,000
Total Assets 14,493.75B 15,430.09B 16,066.50B 16,753.86B 21,094.75B
Total liabilities 7,254.38B 7,684.89B 7,674.07B 8,275.33B 11,665.73B
Total equity 6,986.05B 7,317.20B 7,862.70B 7,793.34B 8,030.96B
Operating cash flow 700,300.33M 726,363.54M 882,119.77M 752,595.66M 790,348.85M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 12,051.55M 12,597.13M 13,723.80M 15,491.86M 16,346.36M
Gross Profit 3,007.85M 3,191.22M 3,493.98M 3,740.93M 3,510.86M
Operating income 444.67M 489.97M 516.75M 427.13M 129.11M
Income before tax 604.81M 436.78M 707.41M 531.53M 178.58M
Net income 401.75M 305.65M 515.26M 380.96M 180.38M
EBITDA 827.98M 878.94M 932.57M 906.66M 885.94M
Diluted EPS 14.41 11.35 19.12 14.23 6.53
Dividends Per Share 1.32 1.29 1.54 1.81 1.71
Total Assets 12,360.88M 12,775.37M 15,007.71M 15,015.11M 18,240.96M
Total liabilities 6,186.84M 6,362.72M 7,168.34M 7,416.50M 10,087.54M
Total equity 5,957.99M 6,058.29M 7,344.54M 6,984.53M 6,944.49M
Operating cash flow 618.74M 626.07M 780.28M 683.85M 677.72M

Valuation Measures

Dec 2019
PER16.73
ROA1.11%
ROE2.65%
Operating margin0.78%
Profit margin1.10%

Key executives

  • Chief Executive Officer & Director: Gab-Soo Lee
  • Head-Finance: Seok-Bong Kim
  • Vice Chairman-Executive Board: Yong-Jin Chung
  • Chairman-Executive Board: Myung-Hee Lee
  • Managing Director: Dong-Hyuk Jung

Shareholders

  • CHUNG YONG-JIN (18.5%)
  • National Pension Service of Korea (12.8%)
  • LEE MYUNG-HEE (10%)
  • GIC Pte Ltd. (Investment Management) (4.1%)
  • E-Mart, Inc. (3.2%)
  • Eastspring Investments (Singapore) Ltd. (2.4%)
  • The Vanguard Group, Inc. (2.1%)
  • BlackRock Fund Advisors (1.6%)
  • Norges Bank Investment Management (1.2%)
  • Dimensional Fund Advisors LP (1.1%)

Contact Details

Related Companies

  • PK Retail Holdings, Inc.
  • Gwangju Shinsegae Co. Ltd. /Supermarket Bus/
  • E-Mart, Inc. /Shanghai 5 Stores/
  • Shinsegae Youngrangho Resort Co., Ltd.
  • Jeju Soju Co., Ltd.
  • Shinsegae Property, Inc.
  • Kunshan E-Mart Shopping Center Co., Ltd.
  • Shinsegae Co. Ltd. /Discount Store Ops/
  • Tong Yang Resort Co., Ltd.
  • Shanghai E-Mart Supercenter Co. Ltd.

Competitors

  • GS Retail Co., Ltd.
  • Lotte Shopping Co., Ltd
  • Walmart Inc.
  • Kroger Co.
  • Costco Wholesale Corporation
  • Amazon.com, Inc.
  • Savezone I & C Corp.
Last Updated on 20 Oct, 2020

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