South Korean home appliance maker Coway reported a 31% jump in third-quarter profit as rental sales surged and overseas markets showed robust growth.
Net income rose to 179.5 billion won ($137 million) from 137 billion won a year earlier. Revenue climbed 9.2% to 1.1 trillion won, marking a record quarterly high, the company said Friday.
The appliance rental pioneer saw its total rental accounts surpass 10 million for the first time, with international markets accounting for 35% of the total. Malaysian operations, Coway’s largest overseas market, rebounded with 8.8% revenue growth to 293.4 billion won.
Domestic rental sales increased 20.6% year-on-year, driven by strong demand for water purifiers and bidets. The company’s home market accounts reached 7 million, with rental customers making up 6.59 million of the total.
However, operating profit margins narrowed to 18.8% from 19.4% a year earlier. The U.S. business turned to a loss due to weaker retail channel sales, though the company expects improvement during upcoming holiday promotions.
Thailand operations showed promising growth with revenue up 8.9% and improved profitability, while Indonesia posted 71.9% revenue growth albeit from a smaller base.
