GS Retail Reports Operating Profit of 208.3 Billion KRW Last Year, Down 17.5% YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] GS Retail announced on the 8th that its consolidated operating profit for last year was tentatively estimated at 208.3 billion KRW, a 17.5% decrease from the previous year. Sales increased by 10.2% year-on-year to 9.7657 trillion KRW. Net profit rose by 409.2% to 786.9 billion KRW.

Operating profit for the fourth quarter was 25.5 billion KRW, down 0.9% compared to the same period last year. Sales and net loss for the same quarter were 2.6545 trillion KRW and 27.6 billion KRW, respectively.

By business segment, convenience store sales amounted to 1.8222 trillion KRW, up 5.5% year-on-year, while operating profit decreased by 5.8 billion KRW to 31.6 billion KRW compared to the same period last year. GS Retail explained, “Although the sales growth rate showed some recovery until October last year, it showed sluggish performance due to the rapid spread of the Omicron variant after November.”

Supermarket sales increased by 2.6% year-on-year to 292.2 billion KRW, and operating loss improved by 3.7 billion KRW to -5.7 billion KRW. This sales increase is attributed to the effect of opening a total of 30 new stores last year.

Home shopping transaction volume was 1.1806 trillion KRW, down 0.6% year-on-year. Operating profit was 39.2 billion KRW, down 7 billion KRW from the same period last year due to increased transmission fees and promotional expenses.

Parnas Hotel sales increased by 55.8% year-on-year to 68.9 billion KRW, and operating profit rose by 13.9 billion KRW to 10.5 billion KRW. This is analyzed to be due to improved occupancy rates and increased demand for openings and wedding events despite the rapid spread of COVID-19.