Foreign Customer Sales Rise... BGF Retail Q3 Operating Profit Up 3.2%
Revenue rises 2.1% to 2.5152 trillion won
Foreign customer sales up 66% year over year
BGF Retail, which operates the CU convenience store chain, said in a regulatory filing on the 5th that its consolidated operating profit for the third quarter of this year rose 3.2% year over year to 100.8 billion won. Revenue increased 2.1% to 2.5152 trillion won. Sales to foreign customers grew, while sales of processed foods, including snacks, performed well.
Foreign customer sales accounted for 35.5% of the increase in total sales across CU stores in the third quarter. Foreign customer sales, calculated based on spending through overseas payment methods and foreign prepaid cards, rose 66.8% from the same period last year. The year-over-year growth rate rose from 53.3% in the first quarter to 60.9% in the second quarter and 66.8% in the third quarter. Foreign customer sales also increased as a share of total store sales, from 1.5% in the third quarter last year to 2.5% this year. CU introduced immediate tax refunds and unmanned currency exchange services, and differentiated product assortments at individual stores based on sales data for each tourist destination.
Changes in product assortments also contributed to improved profitability. Coffee candies and truffle jamon snacks proved popular, while products and marketing featuring girl group RESCENE contributed to sales. Processed food's share of sales rose 0.7 percentage points from a year earlier, while tobacco's share fell 0.4 percentage points.
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Cumulative revenue for the first three quarters of this year was 7.0624 trillion won, and operating profit was 223.8 billion won. These figures were up 4.3% and 18%, respectively, from the same period last year. BGF Retail said, "We plan to expand our product lines using intellectual property (IP) and increase the share of medium-to-large stores measuring 25 to 40 pyeong by focusing new store openings on more profitable locations."
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