BGF Retail (282330) Q3 2025 earnings summary

Executive summary

• Q3 FY25 sales rose 5.9% YoY, operating profit 7.1% and net income 13.4%; growth reflected store openings, larger formats and a one-off consumption-coupon boost.

• Consolidated 9M revenue was ₩6,768.9bn, while operating income was ₩189.7bn and net income ₩145.5bn; revenue increased YoY, but both profit measures declined.

Financial highlights

• Q3 FY25 gross profit was KRW 4,641 hundred million, up 5.4% YoY; income before tax was KRW 992 hundred million, up 11.3%, and net income was KRW 793 hundred million, up 13.4%.

• Consolidated 9M gross profit was ₩1,263.1bn versus ₩1,217.4bn; operating income was ₩189.7bn versus ₩200.0bn, and net income ₩145.5bn versus ₩151.8bn YoY.

• 9M basic and diluted EPS were ₩8,421, versus ₩8,785 YoY; Q3 EPS was ₩4,591, versus ₩4,044.

• Consolidated operating cash flow was ₩647.2bn, investing cash outflow ₩213.2bn and financing cash outflow ₩335.1bn; period-end cash was ₩423.9bn.

• Consolidated assets were ₩3,578.5bn at September 30, 2025, up from ₩3,402.6bn at 2024 year-end.

Outlook and guidance

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

• Medium- to long-term shareholder-return ratio target is 40%, primarily through cash dividends; no additional buyback or cancellation plan is contemplated.

• 2025 investment plan totals ₩388.0bn, including ₩216.1bn through Q3 and ₩102.6bn planned for Q4; plans may change with business conditions.

• New Busan distribution center investment is budgeted at ₩189.5bn, with completion planned by December 2026.

• Product strategy prioritizes broader, higher-quality differentiated offerings, including foreign-visitor products and services as arrivals rise.