Water and air purifier maker Coway said it recorded 647.8 billion won ($598 million) of sales in the first quarter this year with 6.2 percent increase on-year, and 131 billion won of operating profit with 8.6 percent rise on-year, both setting new record highs. 

The company said the record sales and operating profit are attributable to the high popularity of its home appliance rental service, which provides customers with a low-cost monthly lease service for appliances such as water purifiers, air purifiers and mattress. 

Coway’s total number of rental units in the first quarter stood at 377,000, about a 7.9 percent increase on-year, surpassing 2016’s previous high of 351,000 units. Including overseas rentals, the company said its total rental service grew by 10 percent and surpassed 460,000 units globally. 

Last year, sales from Coway’s rental service contributed 80 percent of its total sales, about 4.5 times higher than direct sales of home appliances.
The company said the increase in rentals revenue was the most crucial factor behind Coway’s sustainable growth.

“Coway’s Q1 performance proves that company’s consumer-oriented business are making good results and receiving positive reviews. We will continue to make growth by showcasing new product lineups and rental services of such products in the second quarter,” said Coway CEO Lee Hae-sun.

By Kim Da-sol (ddd@heraldcorp.com)