K Car disclosed on the 14th that, on a consolidation basis, it posted first-quarter revenue of 572.1 billion won and operating profit of 14.2 billion won in preliminary figures.
Revenue fell 5.4% from a year earlier, and operating profit fell 33.8%. Net profit came in at 14.4 billion won, down 29.1% from a year ago.
K Car said the first-quarter results were the result of overlapping factors, including investment for long-term growth and external variables such as the United States–Iran war. Earlier, K Car carried out large-scale marketing for the first time in three years and pursued an aggressive purchasing strategy, including expanding inventory by more than 1,000 units compared with the end of the year. However, it said the rise in oil prices due to the United States–Iran war and the weakening of consumer sentiment slowed the pace of inventory sales, affecting the results.
K Car said a change in this trend has been observed since March. Vehicles purchased since March are yielding profitability about twice the previous level, and it expects the profitability improvement trend to become clear starting in May, when existing inventory is depleted.
K Car plans to launch the "Safe Direct Deal" service within the second quarter as a new growth driver. Starting in June, it will also sequentially open multiple new branches to strengthen its offline infrastructure. Through this, it plans to respond to short-term volatility while boosting both profitability and growth.
K Car President Jeong In-guk said, "The first-quarter results were a temporary adjustment due to unexpected external variables," adding, "There is no change at all in K Car's strategic direction and growth foundation, and we expect gradual improvement in results in the second half."