S.Korea's Oasis posts surplus for second straight year

South Korea's Oasis Corp., a grocery delivery platform specializing in early morning shipments, on Tuesday said it posted last year operating profit of 4.8 billion won ($3.6 million) to finish in the black.

Though the figure was down 15.8% from 5.7 billion won in 2021, the company said the result cemented its surplus trend in e-commerce, which has seen both good and bad since last year.

In logistics, early morning delivery is considered a field difficult to post a profit in due to high labor costs given the sector's distinct need for many graveyard shift workers.

Oasis, which runs 59 stores in Seoul and vicinity, has effectively utilized a strategy of linking offline stores and online services to continue finishing in the black.

The company first sends out orders for early morning delivery when products arrive at a distribution center from a production area. The remaining products the next morning are sent to offline stores to minimize stock.

Oasis' direct purchasing system for fresh food also cuts costs. In the process of distributing products from producers to customers, it saves money by cutting out intermediate wholesalers and processing companies.

After the company's announcement of its "not-so-bad" performance last year, speculation grew over whether it will pursue an IPO again. Oasis aimed to become the nation's first listed e-grocery specialist but canceled its plan last month.

Write to Mi-Kyoung Lee at capital@hankyung.com