GS Retail Q2 Operating Profit 42.8 Billion KRW...27.7% Decrease YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] GS Retail announced on the 4th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 42.8 billion KRW, a 27.7% decrease compared to the same period last year. Sales increased by 3.4% year-on-year to 2.2856 trillion KRW, while net profit fell by 24.5% to 25.4 billion KRW.

By business segment, convenience store business sales rose 3% year-on-year to 1.816 trillion KRW, but operating profit decreased by 3.9% to 66.3 billion KRW. GS Retail explained, "Sales at existing stores were sluggish due to adverse weather conditions such as rainfall in May and June, and some fixed costs like advertising and promotional expenses increased, leading to a decline in operating profit."

Supermarket business sales fell 5.5% year-on-year to 297.4 billion KRW, and operating profit decreased by 6.1 billion KRW to 3.1 billion KRW. This was influenced by a high base effect from the use of super disaster relief funds in the second quarter of last year.

Parnas Hotel sales increased 46% year-on-year to 52.6 billion KRW. The occupancy rates of COEX and Nine Tree Hotels rose by more than 10%. Operating loss improved by 4.3 billion KRW to -7.5 billion KRW.

GS Home Shopping's separate basis sales for the second quarter increased 1.9% year-on-year to 310 billion KRW, but operating profit decreased 23.6% to 31.7 billion KRW. Transaction volume (handling amount) rose 3.8% to 1.1772 trillion KRW.

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