CU convenience stores parent records sales leap
In this article (4)
The operator of South Korea’s CU convenience stores, BGF Retail, has achieved KRW189.5 billion (US$168.9 million) in operating profit last year, a leap of more than 600 per cent over last year. The company said on Tuesday its sales had risen by 515.3 per cent to KRW5.77 trillion ($5.14 billion). The results confirmed market predictions of a major upswing for the firm following demerging into separate holding and operating entities in November 2017.
However, despite the improved trading figures, net profit dropped 98.1 per cent to KRW47.2 billion ($42.06 million). A statement by the firm explained that profits from some business activities made after the demerger had been attributed to the previous year’s statements.
Questions & Answers
Q.What was the main reason for the significant increase in BGF Retail's operating profit and sales?
What was the main reason for the significant increase in BGF Retail's operating profit and sales?
The substantial increase in profit and sales followed BGF Retail's demerger in November 2017. This separation into distinct holding and operating entities led to a major upswing for the firm, as predicted by the market.
Q.Why did BGF Retail's net profit fall so sharply despite strong sales and operating profit growth?
Why did BGF Retail's net profit fall so sharply despite strong sales and operating profit growth?
The company explained that profits from certain business activities conducted after the demerger were attributed to the financial statements of the previous year. This accounting adjustment caused the reported drop in net profit.
Q.When did BGF Retail demerge into separate entities?
When did BGF Retail demerge into separate entities?
BGF Retail completed its demerger into separate holding and operating entities in November 2017. This strategic move preceded the reported significant financial upswing for the company.
Reader pulse
What does BGF Retail's financial report indicate about post-demerger performance?
19,060 votes so far