BGF Retail (282330) Q2 2025 earnings summary

Executive summary

• H1 2025 consolidated revenue rose to KRW 4.307tn, while operating income and net income declined YoY; 2Q sales rose 4.0% as operating profit fell 8.9% and net income fell 9.7%.

• Convenience stores remained the core business, contributing KRW 4.214tn of H1 revenue; Hawaii expansion began with a new subsidiary and a 10-year master franchise agreement.

Financial highlights

• 2Q sales were KRW 2,290.1bn, up 4.0% YoY; gross profit was KRW 429.4bn, up 3.2%.

• 2Q operating profit was KRW 69.4bn, down 8.9%; pretax income was KRW 66.8bn, down 9.6%; net income was KRW 52.8bn, down 9.7%.

• H1 consolidated revenue was KRW 4,306.6bn vs KRW 4,156.7bn; gross profit was KRW 799.0bn vs KRW 777.2bn.

• H1 operating income was KRW 92.0bn vs KRW 108.8bn; net income attributable to parent shareholders was KRW 66.2bn vs KRW 81.9bn.

• 2Q SG&A was KRW 360.0bn vs KRW 339.9bn YoY; slower sales growth and lower gross margin weighed on profit.

Outlook and guidance

• 2025 value-enhancement plan targets 2028 consolidated revenue of KRW 10tn and operating income of KRW 30bn.

• Medium-term goal is a 40% consolidated shareholder-return ratio, primarily through cash dividends; no additional buybacks or cancellations are currently planned.

• Priorities include differentiated products, new categories, loyalty-building marketing and customer acquisition through growth categories.

• 2025 investment plan totals KRW 387.2bn, including KRW 156.4bn in H1 and KRW 189.5bn planned for Q3–Q4; a Busan distribution center is planned through December 2026.