BGF Retail Reports Operating Profit of 162.2 Billion KRW Last Year, Down 17.5% Year-on-Year (Comprehensive)

[Asia Economy Reporter Lim Chun-han] BGF Retail announced on the 9th that its operating profit for last year on a consolidated basis was tentatively estimated at 162.2 billion KRW, a 17.5% decrease compared to the previous year.

Sales increased by 4% year-on-year to 6.1813 trillion KRW. Net profit decreased by 19% to 122.7 billion KRW.

Operating profit for the fourth quarter of last year was 35.5 billion KRW, down 20.2% from the same period last year. Sales and net profit were 1.5563 trillion KRW and 26.2 billion KRW, respectively.

The number of stores last year was 14,923, an increase of 1,046 compared to 2019. BGF Retail explained that operating profit declined due to the worsening business environment of stores in special locations such as university areas and tourist spots amid the COVID-19 pandemic last year.

BGF Retail stated that this year it plans to expand its role as an offline nearby grocery shopping channel through differentiated launches of home meal replacements, strengthening craft beer, wine, and spirits in response to changing drinking trends, and expanding stores in residential areas.

Meanwhile, the holding company BGF's sales last year increased by 15.7% to 154.3 billion KRW, but operating profit decreased by 44.4% to 14.6 billion KRW.