Revenue at KCar exceeded KRW600 billion for the first time in the first quarter of 2024 owing to growth in both unit sales and retail price with a decline in the number of inventory turnover days.

KCar sold 40,093 used cars in Q1 2024, compared to 33,279 in Q4 2023 and 37,211 in Q1 2023.

According to a breakdown, it sold 17,119 units from online channel, 13,493 from physical stores and 9,481 in wholesale auction during the first three months of this year.

The company’s revenue rose 16.8% year on year (y-o-y) to KRW604 billion ($441 million U.S.) in Q1 2024. The revenue also increased 22.0% quarter on quarter (q-o-q).

Gross profit improved 15.4% y-o-y and 21.6% q-o-q to KRW60.4 billion. Earning before interest and taxes (EBIT) surged 33.4% y-o-y and 47.8% q-o-q to KRW17.6 billion ($12.9 million).

The company attributed the robust results to improving inventory turnover with the integration of AI prediction tool into the system and operational efficiency. The efforts were complemented by focus on enriching user experience online and offline.

KCar brought down the inventory turnover days to 31 in the quarter under review from 33 in the similar period a year ago and 40 in the previous quarter, leading to increase in retail margin per unit — 12.8% y-o-y and 10% q-o-q — to KRW1.57 million

“Even in a changing market environment, we achieved the highest quarterly sales by focusing on growth based on customer-first service,” said Inguk Jung, the CEO of KCar.

“With Korea’s largest integrated network combining online and offline, the largest pool of used car specialists, and highly competitive customer service, K Car will further strengthen its market dominance.”

KCar Inc. is the leading certified pre-owned (CPO) vehicle company, based in South Korea. It was listed on the Korea Composite Stock Price Index or KOSPI three year after it established itself as a brand separate from SK Encar in 2018.

Read results here and here.

Print Friendly, PDF & Email

Related Articles