Corporate sales rebound, profit margin grows in Q1 amid pandemic

Corporate sales rebound, profit margin grows in Q1 amid pandemic

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South Korean companies saw their profitability continue their growth in the first quarter, with their sales rebounding from the fallout of the COVID-19 pandemic, central bank data showed Thursday.

The ratio of operating profit to sales of firms in the country reached 6.4 percent in the first quarter, up from 4.2 percent tallied a year ago, according to the data by the Bank of Korea (BOK).

At the same time, the pretax net profit margin of South Korean companies rose on-year to 7.9 percent from 4.4 percent.

Their sales rose 7.4 percent on-year in the first quarter, compared with a 1.9 percent decline a year ago.

By sector, manufacturing firms posted a 10.4 percent on-year jump in first-quarter sales, with their ratio of operating profit to sales widening to 6.7 percent.

Non-manufacturers’ sales also rose 3.3 percent on-year in the first quarter, with their operating profit margin gaining 6.1 percent.

Despite the growth in their sales, the financial health of local companies slightly fell in the first quarter, with their debt to equity ratio rising to 89.4 percent from 86.1 percent. (Yonhap)

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