BGF Retail(282330) said on the 6th that its operating profit in the second quarter rose 22.3% on-year to 84.9 billion won. During the same period, revenue increased 6% to 2.4268 trillion won, and net profit grew 7.6% to 56.8 billion won.
In the first half of the year, the company's cumulative revenue came to 4.5472 trillion won, up 5.6% from a year earlier. Operating profit climbed 33.7% to 123 billion won, and net profit rose 30.1% to 86.1 billion won.
Although a one-off expense arose due to a logistics strike in the second quarter, favorable weather conditions, the effect of high oil price relief payments, and an increase in foreign tourists visiting Korea led to improved results, the company said.
By product category, demand increased for high-margin summer items such as beverages and ice cream. The differentiated products also proved popular, including the "Crack-and-eat dessert" series and the private brand (PB) "The Kitchen" ready-to-eat meals.
Promotions on daily necessities timed with the high oil price relief payments also translated into revenue growth. With the share of cigarettes decreasing and sales of food and processed foods rising, the overall profit structure improved, according to the analysis.
Store strategies that segmented customer groups also drove qualitative growth. The company expanded shopping-specialty stores aimed at one- to two-person households and opened smart groceries to tap nearby shopping demand. The introduction of tourism product specialty stores for foreign visitors and outlets carrying overseas ingredients for foreigners residing in Korea also increased customer traffic.