BGF Retail (282330) Q2 2024 earnings summary

Executive summary

• Q2 FY24 revenue rose 5.0% YoY to ₩2,202.9bn; operating income fell 2.4% to ₩76.2bn and net income fell 1.7% to ₩58.5bn.

• H1 revenue increased to ₩4,156.7bn, while operating income and net income declined to ₩108.8bn and ₩81.9bn, respectively.

• Growth reflected store expansion and higher-quality new stores; convenience stores remained the core business, with international expansion in Mongolia, Malaysia and Kazakhstan.

Financial highlights

• Q2 gross profit was ₩416.1bn; income before tax was ₩73.9bn.

• H1 gross profit was ₩777.2bn versus ₩731.9bn; selling and administrative expenses were ₩668.3bn versus ₩616.8bn.

• H1 operating cash flow was ₩364.6bn versus ₩379.9bn; investing cash flow was an outflow of ₩90.7bn versus ₩99.9bn.

Outlook and guidance

• Second-half priorities included profit-driven operations, differentiated products, stronger signature fresh-food operations, and beverage and alcohol events.

• Planned 2024 investment totaled ₩350.9bn, including ₩181.9bn in Q3–Q4; expected benefits were sales growth, subject to operating conditions.

• A mobile-store model using existing convenience-store infrastructure was planned for a limited one-site test from Q3 2024; broader rollout remained undecided.

• Store development focused on profitability and franchisee returns; Kazakhstan operations added a market through a local master-franchise partner.