PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Revenue and profit both declined in 2025, but sales showed signs of recovery in the first half of 2026 on higher average selling prices, while the shift to direct sofa purchasing and the ongoing revenue race with Simmons continue to reshape the earnings structure.
2025 consolidated revenue was KRW317.3bn (-2.7% YoY) and operating profit KRW54.1bn (-18.3%), with the operating margin falling from 20.3% to 17.0%.
First-half 2026 revenue rose 7.6% YoY to KRW169.8bn, but higher selling and administrative expenses limited operating profit growth to just 1.4%.
After switching the Jacomo and Ecssa sofa brands from consignment to direct purchase, furniture segment revenue jumped 41.1%, though margins remain lower than the bed business.
On a bed-only sales basis, the company has trailed sibling firm Simmons in the No.1 spot for three straight years, though its operating margin remains higher.
In its 2026 value-up plan, the company set targets of maintaining a debt ratio around 10% and a dividend payout ratio above 40%.
Ace Bed Co. is a bed and furniture manufacturer founded in 1963 and listed on KOSDAQ in 1996. Roughly 89% of revenue comes from the bed division, with the remainder from the furniture division and real estate sales and leasing.
The company produces mattresses using proprietary technologies such as the tube-coil method and Z-spring, and operates a bed engineering research institute for product development and process improvement.
It has expanded its premium 'Royal Ace' line through experiential 'Ace Square' stores nationwide, operating 54 stores as of the end of 2024.
Since July 2024, the company converted the sales method for Ecssa and Jacomo, the No.1 and No.2 domestic sofa brands, from consignment to direct purchase, changing how related revenue is recognized.
Its consolidated subsidiary, Serta Korea, distributes the U.S. mattress brand Serta domestically, and the company also holds a 38% stake in affiliate Sports Toto Korea.
Sales channels mix franchise stores and directly operated outlets, and the basis for revenue recognition (wholesale versus retail price) differs from competitors, which has sparked market debate. Domestic sales account for the vast majority of revenue, with overseas sales remaining minimal.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩76.5B | ₩16.9B | 22.1% |
| 2025Q3 | ₩79.9B | ₩12.3B | 15.4% |
| 2025Q4 | ₩79.5B | ₩12.8B | 16.1% |
| 2026Q1 | ₩85B | ₩12.8B | 15.1% |
| 2026Q2 | ₩84.8B | ₩16.6B | 19.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩346.2B | ₩65.3B | ₩54.4B | 18.9% | 8.9% | 11.5% |
| 2023 | ₩306.4B | ₩57B | ₩51.4B | 18.6% | 7.9% | 9.8% |
| 2024 | ₩326B | ₩66.2B | ₩65.9B | 20.3% | 9.3% | 10.7% |
| 2025 | ₩317.3B | ₩54.1B | ₩56B | 17.0% | 7.5% | 9.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
2025 consolidated revenue was KRW317.3bn, down 2.7% from KRW326.0bn a year earlier, while operating profit fell 18.3% to KRW54.1bn and net income attributable to owners dropped 15.1% to KRW56.0bn.
The operating margin declined from 20.3% in 2024 to 17.0% in 2025, with weaker bed division sales amid global uncertainty and sluggish domestic demand cited as the main driver of the decline.
By segment, 2025 bed revenue fell 6.2% to KRW273.1bn, while furniture revenue surged 41.1% to KRW34.0bn, reflecting the accounting effect of switching the Jacomo and Ecssa sofa brands to direct purchase from July 2024.
However, the direct-purchase structure is margin-thin compared with the bed business, limiting its profitability contribution.
On a quarterly basis, net income in the second quarter of 2025 (KRW22.7bn) notably exceeded operating profit (KRW16.9bn), and a similar pattern recurred in the second quarter of 2026, when net income (KRW22.4bn) again outpaced operating profit (KRW16.6bn), indicating that non-operating items materially influence second-quarter results.
In the second quarter of 2026, revenue rose 10.9% YoY to KRW84.8bn, but operating profit fell 1.7% to KRW16.6bn as higher selling and administrative expenses largely offset the benefit of higher average bed selling prices.
Cumulative first-half 2026 figures showed revenue of KRW169.8bn (+7.6%) and operating profit of KRW29.4bn (+1.4%), suggesting the revenue recovery is outpacing profit recovery. First-quarter 2026 revenue was KRW85.0bn, operating profit KRW12.8bn, and net income KRW15.0bn, with revenue up from the prior year.
South Korea's furniture and bedding industry faces broad demand weakness from declining new housing move-ins, softer wedding-related demand, and a slowdown in real estate transactions. Rising import raw material costs, a weaker won, and higher labor costs have also added to industry-wide cost pressure.
Sibling firm Simmons posted 2025 revenue of KRW323.9bn (-2%) and operating profit of KRW40.5bn (-23%), with its operating margin falling 3.49 percentage points to 12.51%. Over the same period, the revenue gap with Ace Bed widened to KRW6.6bn, though Ace Bed's operating margin (17.0%) remained higher than Simmons'.
Some observers note that differing revenue recognition bases—wholesale-driven franchise sales versus retail-priced directly operated stores—limit direct comparability between the two firms. On brand competitiveness, Ace Bed ranked first in a bed brand reputation survey as of March 2026.
Competition has also intensified from mid- and low-price brands such as Sealy and Bestsleep, creating pressure across both the premium and value segments.
Through its 2026 value-up plan, the company set targets of maintaining a debt ratio around 10% and a dividend payout ratio above 40%, emphasizing stable profit generation, management efficiency, and capital structure maintenance via net debt management.
It disclosed a 2025 dividend payout ratio of 41.80% and total dividend payments of KRW23.4bn, up 67.32% from KRW14.0bn in 2024. On the product side, the company continues to expand its premium lineup with new models such as the hotel-inspired 'Baronte'.
For energy efficiency, it is pursuing an eco-friendly smart workplace initiative with LS Electric, introducing factory energy management systems (FEMS) and solar facilities at its Eumseong and Yeoju plants.
As the direct-purchase sofa structure stabilizes, top-line growth in the furniture segment is likely to continue, though its relatively lower margin remains a variable to watch for overall profitability.
The revenue race for the top spot with sibling firm Simmons is likely to continue for now, alongside ongoing debate over differing revenue recognition methods.
The multiples the stock currently trades at should be viewed alongside several years of earnings fluctuation.
The operating margin ranged between roughly 18% and 20% from 2022 to 2025 before falling to 17.0% in 2025, and in the first half of 2026 profit recovery lagged the revenue recovery due to higher selling and administrative expenses.
The share price relative to net assets has tended to trade toward the lower end of its historical range, which should be interpreted alongside the company's low debt ratio and stable dividend policy.
The company's own target of maintaining a dividend payout ratio above 40% serves as a reference point for the direction of shareholder returns, though actual dividend levels will depend on future profit trends.
In terms of profit direction, revenue showed signs of recovery in the first half of 2026 following the 2025 profit decline, but whether this translates into margin improvement needs further confirmation in second-half results.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-22
The 2025 operating margin of 17.0% exceeds the 12.51% posted by larger-revenue peer Simmons. The debt ratio has also remained stable in the 9-11% range, indicating relatively solid financial health. The company reaffirmed its intent to maintain this capital structure in its 2026 value-up plan.
The company retained the No.1 spot in bed brand reputation rankings as of March 2026 and has expanded its experiential Ace Square stores nationwide. It continues a premiumization strategy through lineups such as Royal Ace and the newly launched 'Baronte' model.
Brand trust provides a favorable foundation for expanding both franchise and directly operated distribution and for pricing decisions.
First-half 2026 revenue rose 7.6% YoY to KRW169.8bn, and second-quarter revenue also posted double-digit growth at KRW84.8bn. Higher average bed selling prices are seen contributing to the revenue expansion. Direct-purchase sofa revenue in the furniture segment is also adding to top-line growth.
Overlapping declines in new housing move-ins, weaker wedding-related demand, and slower real estate transactions led bed segment revenue to fall 6.2% in 2025. Given the business's heavy reliance on domestic sales, results are highly sensitive to the domestic economy and housing transaction trends. The broader industry faces similar demand softness, making a near-term reversal uncertain.
The operating margin fell from 20.3% in 2024 to 17.0% in 2025, and in the second quarter of 2026 operating profit declined 1.7% despite revenue growth. Rising raw material prices and higher selling and administrative expenses are seen offsetting much of the benefit from higher selling prices. If raw material and currency pressures persist, margin recovery could be further delayed.
While the shift to direct-purchase for Jacomo and Ecssa lifted furniture segment revenue 41.1%, the margin-thin, intermediary-margin structure means profitability trails the bed business. Some industry observers have repeatedly questioned whether the change was primarily an accounting device to boost revenue.
The ongoing race with Simmons for the top revenue spot, intertwined with disputes over recognition methods, risks shifting attention toward numerical competition rather than underlying business fundamentals.
Given the business's close link to housing transactions and move-ins, a prolonged real estate slowdown could delay revenue recovery. Structural shifts in demographic and consumption trends, such as weaker wedding-related demand, could also affect medium- to long-term demand.
Given import dependence on mattress raw materials, a stronger dollar or weaker won increases cost burdens. Continued upward pressure on labor costs could further add to SG&A expenses.
The revenue-ranking rivalry with sibling firm Simmons, intertwined with disputes over recognition methods, could weigh on market confidence. The ownership-family-centered dividend structure and related governance issues remain variables worth monitoring in terms of alignment with minority shareholder interests.
Check the 2026 third-quarter report for whether the revenue recovery translates into margin improvement, and monitor the furniture segment's revenue contribution and profitability trend.
The 2026 full-year results release should reveal how the annual revenue gap with Simmons has changed and whether the target of maintaining a dividend payout ratio above 40% was actually met.
Watch for follow-up disclosures or reports on additional Ace Square store openings and sales performance of premium lineup additions such as the 'Baronte' model.
Monitor raw material prices and currency trends for signs of easing cost pressure, along with SG&A cost control, to gauge the pace of margin recovery.
Ace Bed saw both revenue and profit decline in 2025, but the first half of 2026 showed signs of revenue recovery, aided partly by higher average selling prices.
However, profit recovery has lagged revenue recovery due to SG&A pressure, and the furniture segment's growth from the direct-purchase sofa conversion comes with relatively lower margins.
The revenue race for the top spot with sibling firm Simmons is likely to continue for now, accompanied by ongoing debate over recognition methods, even as Ace Bed maintains a higher operating margin.
The company outlined plans to maintain a stable capital structure and dividend policy in its 2026 value-up plan, which can serve as a reference point on financial soundness.
Whether the revenue recovery translates into margin improvement in upcoming third-quarter and full-year results, and how the gap with Simmons evolves, remain the key points to watch going forward.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.