South Korean home appliance company Coway is accelerating its growth in Malaysia as strong demand across multiple appliance categories boosts earnings and expands its market presence beyond its traditional water purifier business.
The company said rising sales of air conditioners, washer-dryers, mattresses, and other lifestyle appliances are helping Coway strengthen its position in one of Southeast Asia’s most competitive rental appliance markets.
During the company’s first-quarter earnings conference call on Thursday, CEO Seo Jang-won said Coway continues to deliver strong performance despite intensifying competition in Malaysia.
“Competition in the Malaysian market is becoming increasingly fierce, but we are achieving meaningful results through aggressive response strategies,” Seo said. “Sales of new categories such as air conditioners, washer-dryers, and beds are performing significantly better than expected.”
Seo highlighted the company’s growing market leadership across household appliance categories.
“Our washer-dryers ranked No. 1 in Malaysia, and wall-mounted air conditioners also achieved the top market position,” he said. “At the same time, sales of our core water purifier products continue to show stable growth.”
Coway attributed the momentum partly to promotional campaigns marking the 20th anniversary of its Malaysian subsidiary, along with expanded product lineups tailored to local consumers.
Industry analysts view Coway as one of the pioneers of Malaysia’s rental appliance market. The company initially built strong brand recognition through water purifiers and air purifiers before expanding into broader home appliance categories, prompting other Korean competitors to enter the market.
Coway is also strengthening local manufacturing capabilities to improve cost competitiveness.
Seo said mattresses are currently being produced by BEREX Tech Malaysia, a wholly owned subsidiary, while the company has established two local production lines for its Neo Plus water purifier model.
“In the past, products were manufactured in Korea and exported to Malaysia,” Seo explained. “As local production expands, our cost structure is becoming more stable.”
He added that the shift toward localized manufacturing has generated approximately 10% savings in material costs.
The CEO also noted that local certification requirements remain a key factor in expanding production capacity.
“To manufacture water purifiers in Malaysia, products must receive halal certification and SIRIM certification, which takes time,” he said. “However, over the long term, we plan to further strengthen price competitiveness through expanded local production.”
Sales growth in Malaysia has remained strong across multiple categories.
CFO Kim Soon-tae said the company’s market influence in Malaysia continues to expand, supported by growing sales of air conditioners, washer-dryers, and mattresses.
According to Coway, first-quarter mattress sales in Malaysia reached approximately 35,000 units, up 16% from a year earlier. Air conditioner sales totaled around 20,000 units, while washer-dryer sales reached approximately 10,000 units during the same period.
The company also reported improved overall financial performance.
Coway posted consolidated first-quarter revenue of 1.3297 trillion won ($960 million), up 13.2% year-over-year. Operating profit rose 18.8% to 250.9 billion won, while net profit increased 31.1% to 182 billion won.
The Malaysian subsidiary delivered particularly strong results. Revenue from the unit climbed 23.5% year-over-year to 406.2 billion won, while operating profit surged 42.3% to 73.1 billion won. The operating margin reached 18%.
Coway said double-digit sales growth across major product categories and the successful launch of new products contributed to profitability expansion, alongside improved sales mix and fixed-cost efficiency.
The company also announced plans to strengthen shareholder returns.
CFO Kim said Coway completed share buybacks worth 50 billion won this year and plans to increase cash dividends. Quarterly dividends for the first three quarters are expected to remain at 700 won per share.
