JTC Reports Q1 Sales of 98.6 Billion KRW, Up 20.2% Year-on-Year

Japanese duty-free shop specialist JTC maintained its momentum from last year's record-high performance by posting solid results in the first quarter.

On July 31, JTC announced through a regulatory filing that its consolidated sales for the first quarter reached 98.57041 billion KRW, up 20.2% compared to the same period last year. Operating profit was 11.46529 billion KRW, marking a 3.3% year-on-year increase despite approximately 2 billion KRW in one-off costs related to initial investments for new store openings. The operating profit margin stood at 11.6%, remaining in double digits for five consecutive quarters and demonstrating robust profitability.

Net profit for the period was reported at 8.20916 billion KRW. Notably, the company maintained a high net profit margin of 8.3%, even with about 3 billion KRW in corporate tax expenses resulting from sales growth.

JTC attributed its first-quarter growth largely to the recovery of group tourism demand during the cherry blossom season in March and April. In particular, the company analyzed that an increase in tourists from China and Thailand?by 27.8% and 12.2%, respectively?drove sales growth in major regions such as Hokkaido, Tokyo, and Osaka.

JTC has been making every effort to attract group tourists not only during the seasonally slow period of June to August but also ahead of the peak autumn foliage season from September to November. On July 1, the company opened a new experiential retail store, "Kyochaan," in Kyoto, a region highly favored by tourists. Furthermore, JTC is actively considering opening new stores across Japan targeting tourists of nationalities other than Korean and Chinese. To strengthen its capacity to accommodate group tourists, the company is also investing in infrastructure, such as securing additional tour buses.

CEO Fumiya Yamamoto stated, "As the major earthquake rumors that surfaced in early July are gradually subsiding, demand for travel to Japan is recovering. We expect a full-scale rebound in tourism demand from autumn onwards, and we will continue to expand new store openings and infrastructure investments to enhance our ability to serve group tourists during the peak season and further solidify our growth foundation."