BBQ's Operating Profit Down 13.7% Last Year Due to Price Increases in Olive Oil and Others

Based on standalone figures, 55.3 billion KRW... Operating profit margin down by 3.6%P
Sales increased by 12.8% to 473.1 billion KRW

Genesis BBQ announced on the 12th that its standalone operating profit last year recorded 55.3 billion KRW, a 13.7% decrease compared to the previous year. Sales increased by 12.8% to 473.1 billion KRW. The operating profit margin fell by 3.6 percentage points to 11.7%.

Genesis BBQ Headquarters
[Photo by Genesis BBQ]

BBQ explained that the decline in operating profit and operating profit margin last year compared to the previous year was due to rising raw material prices. The increase in chicken prices and raw material costs such as flour, along with a rapid surge in global olive oil prices caused by natural disasters like droughts and cold damage, worsened profitability.

The olive oil used by BBQ since 2005, sourced mainly from Spain and other Mediterranean coastal regions?the largest olive-producing areas?saw a sharp decrease in harvest volume and a price surge due to two consecutive years of weather anomalies such as droughts. According to the International Olive Council, the price of unrefined (extra virgin) olive oil from southern Spain was 8,645 euros (9,300 USD) per ton as of the end of last month, a 65% increase compared to the same period last year.

Despite the rise in olive oil prices, BBQ has not raised supply prices since May 2022 and has continued efforts for mutual growth by absorbing the increase at the headquarters level.

BBQ’s global business showed strong growth. Overseas sales by BBQ increased by 66% compared to the previous year, achieving record-breaking performance. In particular, sales in the United States grew by nearly 90%, driving global growth.

Last year, BBQ was selected by Nations Restaurant News as the "fastest-growing restaurant brand in the United States." BBQ is the only Korean brand that has ranked for three consecutive years among brands that have expanded overseas.

A BBQ representative stated, "This year, we will continue our growth by strengthening global business and pioneering new consumer markets, while also expanding mutual growth with our family stores."