Hansae Yes24 Group, the South Korean apparel and e-commerce conglomerate, is aiming for a 6% revenue increase by 2025 despite global market headwinds. The group’s ambitious plans were unveiled at its 2024 Global Investor Relations meeting in Ho Chi Minh City, Vietnam.
Vice Chairman Kim Seok-hwan projected the holding company’s 2023 sales at 2.8 trillion won ($2.05 billion) with an operating profit of 193.8 billion won. This comes after the group’s first negative growth in 15 years, with 2022 sales dropping 16.3% to 2.78 trillion won.
To fuel growth, Hansae Yes24 is pursuing strategic acquisitions. The group has been named preferred bidder for Erae AMS, a mid-sized auto parts maker that reported 576.6 billion won in 2022 sales. This move could push the group’s annual revenue beyond 3.4 trillion won.
Hansae Co., the group’s core subsidiary, is bolstering its global presence. Recent initiatives include acquiring US textile manufacturer Texollini and planning new production facilities in Vietnam and Guatemala. These investments aim to capitalize on nearshoring trends and improve the company’s vertical integration.
Despite the optimistic outlook, investors should note the group’s recent performance dip and the challenges of integrating diverse acquisitions. The success of Hansae Yes24’s growth strategy will depend on effectively managing its expanding portfolio and navigating global economic uncertainties.
