'CU Did Well in Business'… BGF Retail Posts 78.1 Billion KRW Operating Profit in Q2 (Comprehensive Report 2)
Driving Sales with Differentiated Products like Yonsei Milk Cream Bread
BGF Retail, which operates convenience store CU, achieved strong performance in the second quarter of this year based on differentiated products.
BGF Retail announced on the 3rd that its consolidated operating profit for the second quarter was 78.1 billion KRW, a 10.3% increase compared to the same period last year. Sales rose 9.4% to 2.0982 trillion KRW, and net profit also increased by 3.7% to 59.5 billion KRW. A BGF Retail official said, "Despite the challenging environment, we achieved stable external growth and sales growth rates," adding, "Both existing store growth and sales from new stores showed favorable results."
Regarding the second quarter performance, BGF Retail analyzed that "general merchandise sales grew centered on cost-effective differentiated products." In particular, Yonsei Milk Cream Bread, which surpassed 25 million units in cumulative sales within one year since its launch in January last year, expanded its product line to include seasonal items such as barley tea and Hallabong citrus this year, selling 15 million units in the first half alone, driving sales growth.
BGF Retail also explained that sales and operating profit were boosted by selling more than 2.6 million units of Yakgwa cookies launched in collaboration with the popular Apgujeong cafe 'Iutjip Tongtong-i' in April this year. They added that the focused introduction of RTD (ready to drink) highball products, first launched in the convenience store industry in November last year, was also effective.
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BGF Retail plans to strengthen product competitiveness by intensively launching new differentiated products in the second half of the year. A BGF Retail official stated, "We will build a 'high-end' image by launching CU’s signature desserts and solidify our reputation as a 'dessert specialty brand.'"
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