SMEs

KleanNara Returns to Profit in Second Quarter… “Improvements in Profitability Becoming Apparent”

Proactive Response to Raw Material Price Fluctuations to Improve Productivity Increased Efficiency Through Power Savings and Expanded Process Automation Optimizing Marketing Activities, Improving Cost Structure

KIM AH-REUM
2026-08-14 13:51:26
[Edaily Reporter KIM AH-REUM ] KleanNara(004540), a lifestyle innovation solutions platform company, has broken its losing streak and pulled off a surprise rebound.

KleanNara announced on the 14th that it had successfully returned to an operating profit in the second quarter of this year, driven by profitability improvement initiatives such as optimizing its cost structure and streamlining production and operations. KleanNara’s consolidated revenue for the second quarter of 2026 was 136.31 billion won, a 10.3% increase compared to the same period last year. Operating profit stood at 620 million won, an improvement of 6.81 billion won compared to the same period last year, marking a shift from an operating loss of 6.19 billion won in the prior-year period to a profit.

Profitability metrics also improved significantly. Second-quarter gross profit was 22.26 billion won, an increase of 6.9 billion won compared to the same period last year (15.35 billion won), and the gross profit margin rose by 3.9 percentage points from 12.4% to 16.3%. The improvement in profitability was driven by both revenue growth and improvements in the cost structure.

The trend toward improved profitability was also evident on a cumulative basis for the first half of the year. Consolidated revenue reached 261.36 billion won, a 2.8% increase compared to the same period last year, while the operating loss narrowed by 6.7 billion won to 3.35 billion won compared to the same period last year (10.05 billion won). Gross profit for the first half of the year was 39.36 billion won, a 24.6% increase compared to the same period last year.

This improvement in performance is the result of structural reform efforts initiated last year yielding tangible results. KleanNara has focused on proactively responding to fluctuations in raw material prices and reducing manufacturing cost burdens through productivity improvements. While enhancing manufacturing efficiency through measures such as power conservation and expanded process automation, the company has also continued to improve its overall cost structure by optimizing inventory management and marketing activities.

The company is also focusing on strengthening profitability through its business portfolio. In the whiteboard paper segment, it is broadening its revenue base by expanding its local sales infrastructure overseas and strengthening its portfolio centered on high-value-added products. While continuously identifying new overseas clients, the company is enhancing its business competitiveness through expanded exports and improvements to its product mix.

The household goods division is strengthening the competitiveness of core products such as sanitary pads while expanding new sales channels, including overseas exports, OEM partnerships, and the public sector. The company is also diversifying its product and channel portfolio to meet changing consumer demand by enhancing product lines that respond to seasonal trends and lifestyle shifts, and by expanding the lineup of its pet-specialty brand, “Popomong.”

Building on its return to operating profit in the second quarter, KleanNara plans to further strengthen its profit improvement momentum in the second half of the year. The company intends to continuously enhance cost competitiveness and production and operational efficiency, while strengthening its business portfolio by focusing on high-value-added products and growth channels. It will also continue initiatives to improve manufacturing competitiveness, such as reducing power consumption and enhancing equipment efficiency.

KleanNara official stated, “The results of the structural reform initiatives we have been pursuing since last year are reflected in our performance, leading to a significant improvement in first-half earnings and a return to operating profitability in the second quarter.” The official added, “In the second half of the year, we will continue to enhance cost competitiveness and productivity, and strengthen our business competitiveness by focusing on high-value-added products and growth markets to sustain this trend of improved profitability.”

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