JTC Achieves Turnaround with 21.6 Billion KRW Operating Profit Last Year... Sales Quadruple

JTC, a Japanese post-tax-free shop operating company, announced on the 16th that its consolidated sales last year reached 149.93763 billion KRW, a 318.9% increase compared to the previous year, driven by the recovery in demand for travel to Japan. Operating profit and net profit for the year turned around to 21.62327 billion KRW and 20.19813 billion KRW, respectively.

A JTC representative stated, “According to internal settlement standards, last year’s sales increased more than fourfold compared to the previous year, showing a full-scale recovery in performance following the end of the COVID-19 pandemic. In the fourth quarter, both sales and profitability improved significantly, with the core duty-free business segment alone recording sales of approximately 53.6 billion KRW and operating profit of 7 billion KRW (operating margin of 13.1%). Especially, operating profit marked a second consecutive quarter of surplus following the previous quarter, creating an encouraging atmosphere.”

Korean tourists visiting Japan, who account for a large proportion of JTC duty-free store visitors, surged by 249.7% year-on-year last year due to the normalization of Korea-Japan air routes and the continued weak yen phenomenon. The demand from Chinese tourists, who accounted for more than 80% of total sales before the COVID-19 pandemic, is also steadily recovering. Since the Chinese government resumed group tours in October last year, numerous cruise ships from China have been calling at Fukuoka, Nagasaki, Okinawa, and other locations. With the normalization of flights and improvement in diplomatic relations between the two countries, significant growth is expected starting this year.

Additionally, the company is implementing various strategies to attract Taiwanese tourists, including deploying Taiwanese staff at major stores. Among Southeast Asian countries, Thailand, which accounts for the largest share of visitors to Japan, has seen a surge in travelers since last winter season following joint promotions with airlines. Consequently, JTC is expanding its presence mainly in Hokkaido, Tokyo, and Fujinoeki (near Tokyo).

Having completely overcome the impact of the COVID-19 pandemic and achieved a turnaround to profitability last year, JTC plans to pursue a more aggressive business strategy this year. It intends to reopen all previously closed stores and is considering additional openings in new high-demand areas. To improve management efficiency, the company will significantly expand its downsized sales organization and strengthen sales activities targeting travel agencies in Southeast Asia, including Taiwan, Thailand, and Vietnam, in addition to Korea and China.

JTC CEO Gu Cheol-mo said, “With the confirmed turnaround to operating profit last year, JTC is highly likely to be delisted from the designated management stock category, which was assigned two years ago. I am grateful to the many shareholders who believed in and supported JTC through hardships and adversity.” He added, “We will not be satisfied with just the turnaround but plan to solidify JTC’s fundamentals by enhancing management efficiency and expanding sales.”