KG Mobility Platform swings to operating profit in Q3... “Revenue down 27.8% in a year”

[Financial News] KG Mobility Platform, which operates K Car, a company-operated used-car platform, has emerged from a large deficit in the previous quarter. Its operating profit in the third quarter of this year was 7.5 billion won, turning a profit after a 33.6 billion won loss in the second quarter. However, revenue fell 27.8% compared with the same period last year.
KG Mobility Platform said on the 5th that it recorded revenue of 480.4 billion won in the third quarter. The company said it had focused on restoring profitability and inventory health in a market marked by a transition in its management structure and ongoing external uncertainties. It said profitability metrics, including gross profit margin and retail gross profit per unit, improved from the previous quarter as the burden of large one-off costs incurred in the second quarter disappeared, the need to adjust prices on existing inventory eased, and newly acquired vehicles made up a larger share of sales.
Gross profit in the third quarter was 49.3 billion won, up 19.1% from the previous quarter. Gross profit margin rose 0.8 percentage points to 10.3%, a level similar to that of the same period last year. Inventory turnover also accelerated from the previous quarter.
Sales also increased. Total sales in the third quarter reached 33,335 units, up 7.1% from the previous quarter, while retail sales rose 11.2%. Revenue from the retail segment was 423.4 billion won, up 11.9%.
By contrast, compared with the same period last year, revenue fell 27.8% and total sales volume declined 21.5%. KG Mobility Platform said market trading conditions were difficult due to fewer business days resulting from a shift in the timing of the Chuseok holiday and the financial burden of buying a vehicle. It added that its conservative purchasing and inventory management approach, which prioritizes the turnover of existing inventory and profitability, also had an impact. Revenue in the auction segment fell 38.3% to 38.4 billion won as export demand weakened amid tighter regulations in major importing countries and logistics uncertainty.
KG Mobility Platform plans to pursue a recovery in sales volume while maintaining its focus on profitability and inventory health. Following its integration into KG Group, it is exploring collaboration opportunities that would draw on its existing capabilities in the certified used-car business, as well as the potential for overseas expansion using KGM's international network. It is also considering ways to improve customer services in partnership with the group's finance and payments affiliates, and plans to pursue collaboration projects in stages, starting with areas that are most feasible.
KG Mobility Platform CEO Jeong In-guk said, “The third quarter was a period in which we saw improvement from the previous quarter in retail sales and profitability metrics, despite the transition in our management structure and challenging market conditions.” He added, “We will strengthen the competitiveness of our core business and work to improve profitability and recover sales volume, laying the foundation for sustainable growth.”

[email protected] Kim Dong-chan Reporter