JTC Reports Operating Profit of 11.1 Billion KRW in Q1... "Earnings Surprise"

Japanese post-tax-free shop operation specialist company JTC announced its financial results for the first quarter of fiscal year (FY) 2024 through a disclosure on the 30th.

JTC's consolidated sales for FY24 Q1 amounted to 82,059,800,000 KRW, marking a 52.9% increase compared to the previous quarter. Operating profit recorded 11,095,130,000 KRW, showing a significant growth of 52.7% quarter-on-quarter, surpassing market expectations. Operating profit has fully recovered to levels above those before COVID-19.

A JTC representative explained, "With the mild climate, spring cherry blossom trips have become popular, marking the peak season, and sales have significantly increased in all countries where we operate, including Korea, China, Taiwan, and Thailand, compared to the previous quarter. In particular, from March, as large city and cruise package tours for Chinese tourists visiting Japan have become active, sales in China surged by 146.2% compared to the last quarter."

Due to the accelerated depreciation of the yen, preference for travel to Japan within Korea has rapidly increased, resulting in increased flights. Most travel agencies are running special promotions for Japan, so steady demand is expected to continue for the time being.

JTC is also showing gradual sales growth in Taiwan and Thailand. Following the last quarter, Taiwanese package tourists are gradually expanding, mainly in the Hokkaido, Tokyo, and Osaka areas. The company explained that Thai package tourists, who have significantly increased in Hokkaido, Fujinoeki, and Osaka due to the Thai New Year festival Songkran, are expected to continue the upward trend as direct flights increase.

Cheolmo Koo, CEO of JTC, said, “This quarter, package tourists from the Chinese-speaking region visiting Japan showed a full recovery, achieving significant results in terms of sales and profitability. Starting in July, a direct airport limousine bus running six times a day between DOTON PLAZA, a comprehensive shopping center located in Osaka’s Dotonbori, and Kansai International Airport (KIX) is operating, so we also expect to capture shopping demand from individual travelers.”

This content was produced with the assistance of AI translation services.