BGF Retail's Q2 Operating Profit Down 27% Year-on-Year

Operating Profit and Net Income Both Plummet Year-on-Year
Improvement Compared to Q1

[Asia Economy Reporter Cha Min-young] BGF Retail, which operates the convenience store CU, posted weaker results in the second quarter of this year compared to the previous year due to the COVID-19 pandemic.

BGF Retail announced on the 6th that its consolidated operating profit (provisional) for the second quarter was 44.5 billion KRW, down 27.0% from the same period last year. During the same period, sales increased by 2.1% to 1.5491 trillion KRW compared to the previous year, but net profit decreased by 27.9% to 33.1 billion KRW.

However, both sales and profits improved compared to the previous quarter. Operating profit in the second quarter increased by 140.5% compared to the first quarter, and sales rose by 11.2%. Net profit during the same period also increased by 175.8% compared to the previous quarter. This is estimated to be a windfall benefit from being designated as a place where government emergency disaster relief funds could be used.

A BGF Retail official explained, "Despite an overall slowdown in consumption due to COVID-19, we believe we performed relatively well compared to other distribution channels. However, the profitability of special stores, which have a relatively high proportion in the industry such as local stores, university stores, resort stores, and hospital stores, deteriorated and affected operating profit."