BGF Retail is projected to achieve revenue of 2.4172 trillion won and operating profit of 76 billion won in Q2 this year, according to a consolidated forecast from 10 major domestic securities firms surveyed by Yonhap Infomax on the 24th. The figures represent year-over-year increases of 5.55% and 9.57% respectively. The growth is attributed to the company's strategy of closing inefficient stores while expanding premium locations, supported by recovering consumer sentiment and favorable weather conditions during the quarter. However, one-time costs related to the truckers' strike are expected to partially limit operating profit improvement. BGF Retail's business portfolio in Q1 this year comprised convenience stores (97.6% of revenue), logistics (4.2%), food manufacturing and distribution (2.1%), advertising/delivery/e-commerce (0.9%), and other segments (1.6%).
BGF Retail Q2 2025 Earnings Forecast Shows Revenue and Profit Growth
The Q2 earnings forecast for BGF Retail indicates revenue of 2.4172 trillion won and operating profit of 76 billion won on a consolidated basis. These figures mark increases of 5.55% and 9.57% respectively compared to the same period last year. The forecast is based on projections from 10 major domestic securities firms compiled by Yonhap Infomax within the past month. Securities analysts attributed the expected performance to the company's continued focus on premium store expansion while closing underperforming locations.
Same-Store Sales Growth Accelerates to 4.0% in Q2
BGF Retail's convenience store same-store sales growth rate reached 4.0% year-over-year in Q2, higher than the 2.7% recorded in Q1. Lee Hae-ni, a researcher at Eugene Investment & Securities, stated that weather suitable for outings increased both customer traffic and average transaction value at convenience stores. The researcher added that the company benefited from consumption shifting toward domestic spending rather than overseas travel amid high oil prices and a strong dollar. Foreign customer sales growth also contributed positively, with Kyobo Securities reporting that BGF Retail's foreign customer sales increased 52.1% year-over-year in Q1, with June growth estimated at 60%. The government's fuel subsidy support program, which provided 100,000 to 600,000 won per person to 70% of the population starting in Q2, also contributed to sales growth as the subsidies were spent at convenience stores.
Truckers' Strike Costs to Impact Q2 Operating Profit
One-time costs related to the truckers' strike are expected to be reflected in Q2 results. Truck drivers responsible for CU convenience store logistics conducted a strike demanding increased transportation fees and expanded rest days. Joo Young-hoon, a researcher at NH Investment & Securities, identified the truckers' strike as a short-term variable, stating that related costs including alternative logistics expenses and losses from refrigerated product shortages will be reflected in Q2 performance. Despite these one-time costs, operating leverage effects from the higher same-store growth rate are expected to support operating profit improvement. Operating leverage refers to the phenomenon where operating profit changes more significantly than sales in companies with fixed costs.
FAQ
What is BGF Retail's projected Q2 2025 revenue and operating profit?
BGF Retail is forecast to achieve revenue of 2.4172 trillion won and operating profit of 76 billion won in Q2 this year, representing year-over-year increases of 5.55% and 9.57% respectively according to a survey of 10 major domestic securities firms by Yonhap Infomax.
How did BGF Retail's same-store sales growth perform in Q2 compared to Q1?
BGF Retail's convenience store same-store sales growth rate reached 4.0% year-over-year in Q2, up from 2.7% in Q1, driven by the company's strategy of closing inefficient stores while expanding premium locations, recovering consumer sentiment, and favorable weather conditions.
What one-time costs will affect BGF Retail's Q2 operating profit?
One-time costs related to the truckers' strike will be reflected in Q2 results, including alternative logistics expenses and losses from refrigerated product shortages, which are expected to partially limit operating profit improvement despite positive operating leverage from higher same-store sales growth.
