Woowa Brothers Posts ₩4.32 Trillion Revenue, ₩640.8 Billion Operating Profit for 2024

Woowa Brothers' Sales Surpass 4.3 Trillion Won! Grappling with Profitability Challenges Amidst Quick Commerce's Explosive Growth Woowa Brothers, the operator of Baedal Minjok (hereinafter Baemin), achieved consolidated sales of 4.3226 trillion won last year, recording an all-time high. This represents a 26.6% increase compared to the previous year, driven by stable growth in its core food delivery business and explosive growth in commerce services like Baemin Bmart, groceries, and shopping. However, as operating expenses, including outsourcing costs, increased, operating profit recorded 640.8 billion won, an 8.4% decrease from the previous year, revealing challenges in profitability management amidst quantitative growth. **Key Drivers of Growth: The Advancement of Food Delivery and Commerce** Looking at the detailed sales figures, service sales, including food delivery and brokerage-type commerce (groceries and shopping), reached 3.5598 trillion won, surging by 30.9% compared to the previous year and leading growth. Food delivery successfully attracted customers by offering free delivery benefits and franchise discounts through subscription programs like 'Baemin Club,' continuing its robust performance. In particular, the strong advance of the quick commerce business is remarkable. Last year, the number of grocery and shopping orders surged by a whopping 369% compared to the previous year, and transaction volume also rapidly grew by 309%. The total number of orders for convenience stores, corporate supermarkets, and large marts increased by an impressive fivefold. Product sales, including Baemin Bmart, grew by 10% year-on-year to 756.8 billion won, thanks to an expansion of product categories and an increase in average order value, achieving the remarkable feat of reaching profitability on an annual EBITDA basis for the first time last year. Bolstered by these achievements, Baemin's overall commerce business (Bmart, groceries, and shopping) recorded a 49.4% increase in the number of unique customers and a 38.8% increase in the number of orders last year, with annual transaction volume surpassing 1 trillion won for the first time, establishing itself as a new growth engine. A Woowa Brothers official stated, "We achieved robust sales growth based on the balanced growth of our food delivery and commerce businesses," and emphasized plans to maximize customer value this year through improving delivery quality, customer discounts, strengthening subscription services, and expanding investment in pickup orders and commerce marketing.