BGF Retail (282330) investor relations material

Executive summary

• Q2 revenue rose 6.0% YoY to KRW 2,426.8bn and operating income increased 22.3% to KRW 84.9bn, supported by food-category growth and margin improvement.

• Same-store sales grew 4.2% YoY, with traffic up 3.0%; foreign-customer sales increased 60.1%.

• H1 revenue was KRW 4,547.2bn, operating income KRW 123.0bn and net income KRW 86.1bn, all above H1 2025 levels.

• Convenience stores represented 97.7% of segment revenue before eliminations.

Financial highlights

• Q2 gross profit was KRW 463.8bn, up 8.0% YoY; income before tax was KRW 74.8bn, up 12.0%, and net income was KRW 56.8bn, up 7.6%.

• H1 gross profit was KRW 854.9bn vs KRW 799.0bn; basic EPS was KRW 4,985 vs KRW 3,830.

• H1 operating cash flow was KRW 350.7bn vs KRW 310.9bn; cash and equivalents were KRW 325.9bn at June-end, down from KRW 414.0bn at FY2025-end.

Outlook and guidance

• 2028 targets are consolidated revenue of KRW 10tn and operating income of KRW 300bn.

• Medium-term shareholder-return target is 40%, primarily through cash dividends; no additional buyback or cancellation program is under consideration.

• 2026 planned investment totals KRW 332.7bn, including KRW 166.7bn executed in H1 and KRW 144.4bn planned for Q3–Q4; plans may change with operating conditions.

• A new Busan distribution center is planned with KRW 189.5bn total investment through December 2026 to add capacity and improve logistics efficiency.

• Store strategy prioritizes selective, high-quality openings and same-store sales growth; 500 Smart Grocery stores are targeted by year-end, with a foreigner-dedicated co-branded card planned for Q3.