HMM Warns Of ‘Cost Cutting’ Despite Strong Q1 Profits

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  • HMM warned that, despite rising profits, fears of a change in market conditions would see it cut costs and focus on high-yielding business.
  • Q1 revenue climbed 12% year on year, to KRW2,330bn ($1.7bn), while net profit shot up 63%, to KRW485bn, and operating profit rose to KRW407bn.

South Korea’s major ocean carrier HMM achieved increased revenue and profits in the first quarter of the year, reports the Loadstar.

HMM reports strong Q1 results

In particular, the company reported US$1.7 billion in revenue in the first three months of 2024, translating to a 12% growth from the same period last year. Additionally, HMM saw its Q1 net profit climb 63% to US$350 million and Q1 operating profit rise 33% to US$300 million.

The preliminary figures disclosed above are unaudited and are based on the company’s tentative internal information, which is subject to change.

Despite market uncertainties, the combined operating margin reached 17.5%, marking a surplus for the last 16 consecutive quarters.

HMM’s spokesperson said, “The main economic indicators are favorable due to consistent consumer demand, including the recovery of the US economy, growth in online business from China, and the easing of inflation.”

The company’s representative pointed out that HMM aims to strengthen its business capability by reinforcing its environmental competitiveness and establishing digitalization.

HMM intends to prepare for rapidly shifting market conditions through cost-cutting and lucrative operations,” added the spokesperson.

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Source: The Loadstar