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Convenience stores' earnings edge up in Q2

All Headlines 16:40 August 09, 2018

SEOUL, Aug. 9 (Yonhap) -- South Korea's leading convenience store operators delivered decent earnings in the second quarter of this year on the back of new products, including in-house items, their filings showed Thursday.

GS Retail Co., operator of GS25, said its net jumped 11.1 percent on-year to 45.8 billion won (US$41 million) in the April-June period.

The company posted an operating income of 55.7 billion won, up 4.9 percent on-year, and sales of 2.2 trillion won, up 5.3 percent from the same period in 2017.

GS Retail attributed the growth in earnings to development of new products at its convenience stores.

South Korean convenience store operators have been accelerating their push to develop in-house products to attract more consumers with price competitiveness.

GS Retail said 36.7 percent of sales at its convenience stores, excluding those from alcoholic beverages and cigarettes, came from its private-label products in July.

BGF Retail Co., the operator of CU, said its net profit came to 67.4 billion won in the April-June period, up 105 percent from the first quarter of this year. The comparable figure for the same period a year earlier was not available as the company was established in November after separating from BGF Co.

It operating profit came to 56.4 billion won with revenue of 1.48 trillion won.

Shares in convenience stores were bullish on the Seoul bourse Thursday, with BGF Retail advancing 2.11 percent and GS Retail gaining 1.99 percent. The broader KOSPI index edged up 0.1 percent.

The earnings results were released after the stock market closed.

scaaet@yna.co.kr
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