KYOCHON F&B announced on the 12th that its consolidated revenue reached 480.6 billion won and operating profit was 15.2 billion won last year.
Revenue increased by 8% compared to the same period last year, but operating profit decreased by 38.6%. Net profit for the period was 543 million won, down 95.8% from the previous year. On a quarterly basis, revenue in the fourth quarter of last year was 125.9 billion won, reflecting a 13.2% increase compared to the same period last year.
KYOCHON F&B noted that the reason for the decline in profitability was the one-time expense of 22.9 billion won resulting from the direct management transition of the franchise regional headquarters. Excluding this, last year's operating profit was 38.1 billion won, which represents a 53.6% increase compared to the same period last year, according to KYOCHON F&B.
KYOCHON F&B evaluated that consumer demand has entered a recovery phase, and global business is showing good performance due to continuous strengthening of overseas operations. In particular, it reported that sales in the domestic chicken franchise business increased due to the effect of model Byun Woo-seok.
As a result of activating the KYOCHON ordering app, the cumulative number of members reached 6.2 million as of the end of last year. The proportion of total orders made through the company app rose to 13%, an increase of 3 percentage points compared to the previous quarter. The company is making efforts to reduce the commission burden on franchise owners by lowering dependence on delivery platforms.
By strengthening global business, revenue from master franchise (MF) royalties and export of materials has shown steady growth, and new businesses such as buckwheat noodles, sauce business, craft beer, and eco-friendly packaging have stabilized, leading to increased related revenues.
KYOCHON F&B plans to introduce various new menu items reflecting new consumer trends in the domestic market, and to expand existing stores in countries where it has already entered, as well as develop new countries and regions in the overseas market.