BGF Retail (282330) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue was KRW 2.0165tn, up 3.2% YoY; adverse weather, social issues and domestic and global economic conditions weighed on sales growth.

• Operating income fell 30.7% YoY to KRW 22.6bn and net income fell 42.7% to KRW 13.4bn, amid slower off-season sales growth.

Financial highlights

• Consolidated gross profit was KRW 369.6bn versus KRW 361.1bn YoY; SG&A was KRW 347.0bn versus KRW 328.5bn.

• Profit before tax was KRW 17.3bn versus KRW 30.9bn YoY; income tax expense was KRW 3.9bn versus KRW 7.5bn.

• Basic and diluted EPS were KRW 773 versus KRW 1,355 YoY; consolidated comprehensive income was KRW 14.1bn versus KRW 22.8bn.

• Operating cash flow was KRW 63.3bn versus KRW 105.9bn YoY; investing cash outflow was KRW 72.8bn and financing cash outflow KRW 89.7bn.

Outlook and guidance

• 2028 targets: revenue above KRW 10tn and operating profit above KRW 300bn; the medium-term shareholder-return ratio target is 40%, with gradual expansion.

• Planned 2025 investment totals KRW 408.4bn, with KRW 68.2bn spent in Q1 and KRW 315.7bn planned for Q2–Q4; plans may change with business conditions.

• A new Busan distribution center is planned to improve logistics capacity and efficiency, with ~KRW 189.5bn total investment and completion targeted by December 2026.