BGF Retail (282330) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was ₩2.1204tn, up 5.2% YoY; operating income rose 68.6% to ₩38.1bn and net income rose 118.7% to ₩29.3bn.

• Food and processed-food demand, improving consumer sentiment, favorable weather, margin improvement, store expansion and subsidiary growth supported results; convenience-store operations remained the earnings core.

Financial highlights

• Revenue was ₩2.1204tn vs ₩2.0165tn YoY; gross profit rose 5.8% to ₩391.2bn from ₩369.6bn.

• Operating income increased 68.6% to ₩38.1bn from ₩22.6bn; income before tax rose 121.4% to ₩38.3bn.

• Net income rose 118.7% to ₩29.3bn from ₩13.4bn; basic and diluted EPS were ₩1,696 versus ₩773 a year earlier.

• Operating cash flow was ₩101.8bn vs ₩63.3bn; quarter-end cash and cash equivalents were ₩352.9bn, down from ₩414.0bn at year-end 2025.

Outlook and guidance

• 2028 targets are ₩10tn consolidated revenue and ₩300bn operating income; stated progress was ₩9,061bn (90.6%) and ₩253.9bn (84.6%), respectively.

• Long-term shareholder-return target is a 40%+ payout ratio, primarily through cash dividends; stated current return rate was 36.3%, with no buyback or cancellation plan under consideration.

• 2026 investment is planned at ₩332.6bn, including ₩77.6bn in Q1 and ₩234.2bn for Q2–Q4; plans may change with business conditions.

• A Busan distribution center is planned by Dec. 2026, with total construction and systems investment of ~₩189.5bn.

• Priorities include same-store sales recovery, customer-base expansion, adapting products to demographic shifts and quality-focused net store growth.