Kyochon F&B(339770) said on the 7th that operating profit on a consolidation basis in the second quarter this year was 7.8 billion won, down 15.7% from a year earlier. Revenue for the same period rose 4.9% to 132.3 billion won.
Kyochon F&B said operating profit fell as the company absorbed higher costs of key raw and subsidiary materials stemming from external variables such as the prolonged outbreak of avian influenza (AI) since winter and the situation in the Middle East. An increase in selling and administrative expenses, including transportation costs due to higher global crude oil prices, also affected profitability.
Revenue increased as chicken demand expanded on the back of normalized raw material supplies, the popularity of professional baseball, the World Cup, and the peak season in Family Month. The normalization of global store operations and increased sales in new businesses such as alcoholic beverages also had a positive impact on results.
A Kyochon F&B official said, "In the second half, we plan to further strengthen brand competitiveness by stabilizing raw and subsidiary material supplies and enhancing the menu lineup," adding, "While actively responding to scheduled sports events, the boknal season, and year-end peak season demand, we will continue revenue growth and profitability improvement by expanding our global business and diversifying the sales base of new businesses."