Kyochon F&B’s Q2 Operating Profit at 7.8 Billion Won, Down 15.7% Year-on-Year

Q2 Sales Reach 132.3 Billion Won, Up 4.9% Year-on-Year

Kyochon F&B, the operator of Kyochon Chicken, announced on the 7th that its consolidated sales for the second quarter of this year (April–June) were tentatively estimated at 132.3 billion won, with an operating profit of 7.8 billion won. Sales increased by 4.9% compared to the same period last year, while operating profit decreased by 15.7%. The operating margin was recorded at 5.9%.

Kyochon F&B, the operator of Kyochon Chicken, announced on the 7th that its consolidated sales for the second quarter (April to June) of this year were tentatively estimated at 132.3 billion KRW, with an operating profit of 7.8 billion KRW. Provided by Kyochon F&B

Kyochon F&B explained that the normalization of raw material supplies, combined with rising demand for chicken due to the popularity of professional baseball, the World Cup, and the peak family season, contributed to increased sales. The company added that the stabilization of global store operations and expanded revenues from new business areas, such as alcoholic beverages, also had a positive impact on its performance.

However, the company noted that prolonged avian influenza since winter and external factors such as instability in the Middle East led to higher costs for key raw and subsidiary materials, which weighed on profitability. At the same time, increases in international oil prices resulted in higher logistics and selling & administrative expenses, which also contributed to the decline in operating profit.

In the second quarter of this year, Kyochon F&B’s selling and administrative expenses amounted to 29.1 billion won, up 6.7% compared to the same period last year. Logistics costs surged by 16.3% over the same period, due to expanded delivery operations and higher oil prices.

As of the second quarter of this year, Kyochon F&B operated 1,368 domestic stores and 77 global outlets.

A Kyochon F&B official stated, “In the second half of the year, we plan to further strengthen brand competitiveness by stabilizing the supply of raw and subsidiary materials and enhancing our menu lineup. We will continue to drive sales growth and profitability by responding to demand from scheduled sports events, the peak summer and year-end seasons, and by further expanding our global business and diversifying the sales base of new businesses.”

This content was produced with the assistance of AI translation services.