[Edaily Reporter PARK JI-AE ] BGF Retail(282330), which operates the CU convenience store chain, posted second-quarter earnings that exceeded market expectations, driven by an increase in foreign visitors and the impact of subsidies to offset high oil prices. Operating profit rose 22.3% year-over-year to 84.9 billion won, surpassing the securities industry’s forecast of 83.4 billion won by 1.8%.

According to an electronic disclosure by the Financial Supervisory Service on the 6th, BGF Retail’s consolidated operating profit for the second quarter of this year was provisionally estimated at 84.9 billion won, a 22.3% increase from the same period last year. Cumulative operating profit for the first half of the year reached 123.0 billion won, up 33.7% year-over-year.

Revenue for the same period reached 2.4268 trillion won, a 6.0% increase compared to the same period last year. Cumulative revenue for the first half of the year totaled 4.5472 trillion won, up 5.6% from the same period last year.

BGF Retail noted that while one-time costs were incurred earlier this year—including temporary disruptions in the supply of certain fresh foods and ready-to-eat meals due to a strike at a logistics center by the Cargo Solidarity Headquarters of the Public Transport Workers’ Union under the Korean Confederation of Trade Unions—both revenue and operating profit increased, driven by strong sales of summer merchandise amid an early heatwave, the distribution of consumer vouchers to support livelihood recovery, and a rise in foreign tourists visiting Korea.

A BGF Retail official stated, “A combination of factors—including increased sales of summer products due to fewer rainy days and higher average temperatures compared to last year, a recovery in consumer sentiment, the distribution of livelihood recovery consumption coupons, and an increase in foreign tourists visiting Korea—had a positive impact.”

By product category, demand rose for high-margin summer items such as beverages and ice cream. The popularity of differentiated products—such as the “Crunchy Dessert” series and “PBICK The Kitchen” ready-to-eat meals—as well as promotions on daily necessities timed to coincide with the distribution of subsidies to offset high fuel prices, also contributed to sales growth.

The profit structure also improved as sales of food products—which are relatively more profitable than tobacco—expanded.

The share of food and processed food in total sales rose by 0.4 percentage points and 0.9 percentage points, respectively, compared to the same period last year. Consequently, the company achieved a more sophisticated product mix, with the share of tobacco decreasing and the average product profit margin increasing.

Store strategies that segmented the customer base also helped boost customer traffic.

A BGF Retail official explained, “We expanded grocery stores specializing in one- and two-person households and opened ‘Smart Grocery’ stores to target local grocery shopping demand,” adding, “We also diversified customer acquisition channels by introducing specialty stores offering tourism products for foreign visitors to Korea and stores selling international ingredients for foreign residents in Korea.”