Artificial intelligence (AI)-based supply chain management software EMRO set a record for its highest annual sales for the seventh straight year. However, profitability temporarily slowed due to increased investment tied to global business expansion.
EMRO said in a filing on the 27th that last year's sales on a consolidation basis rose 5.7% from a year earlier to 83.98024 billion won. Operating profit came to 905.56 million won and net profit to 2.53499 billion won over the same period, down 89.4% and 86.4%, respectively. The company said higher upfront expense for developing a global SRM SaaS solution and entering overseas markets was the main reason for the profit decline.
In the sales mix, technology-based sales growth stood out. Technology-based sales, which combine software licenses, cloud service fees, and technology fees, rose 29.3% on-year to 33.98 billion won, accounting for 40.5% of total sales. Observers said the shift to a SaaS (software as a service)-centered business model is gaining full steam.
By institutional sector, software license sales were 9.75 billion won, up 18.1% on-year, and cloud service fees increased 13.6% to 6.13 billion won. Technology fees from existing clients grew 43.2% to 18.11 billion won, expanding a stable base of recurring sales.
EMRO strengthened its presence last year as an SRM (procurement and supply chain management) software corporations at home and abroad. It completed a next-generation procurement system project for the nation's largest IT company and won additional contracts for procurement system builds and AI-based digital innovation projects, focusing on growth sectors such as defense and energy. In North America, it signed contracts to supply the SRM SaaS solution "Caidentia" with a global PC and server maker, a local electronics manufacturer, and an HVAC equipment company, among others.
EMRO is currently expanding its business footprint to the European market. It is conducting solution demos and PoCs (proof of concept) with corporations in energy, high-tech, and manufacturing, and plans to accelerate its global push this year by securing new clients in Europe.
It is also continuing to upgrade its solutions. Centered on "Caidentia," EMRO will reorganize its procurement solution portfolio and roll it out in earnest in the domestic market. Through an AI-based bill of materials (BOM) automatic comparison and analysis function and AI agents that automate procurement workflows, it plans to support corporations in achieving AI-driven procurement innovation.
An EMRO official said, "Last year was a year focused on investment to strengthen global competitiveness," adding, "This year, we will deliver tangible results in our core markets such as North America and Europe and further reinforce a sustainable growth system based on Caidentia."