Meal kits drive strong sales and profit growth for GS Retail
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GS Retail, which operates the South Korean convenience-store chain GS25, has reported a huge profit increase for this year’s first financial quarter, boosted by sales of pre-packed meal kits popular during the coronavirus lockdown.
GS Retailreported a KRW88.8 billion (US$72.1 million) in profit from January to March, a 314.7-per-cent increase over last year’s figures. The result was considerably higher than the projected KRW23.9 billion ($19.5 million) profit for the period and sparked a 16.6-per-cent rise in its share value.
A 98.7-per-cent surge in online sales was also a significant contributor to the firm’s first-quarter good fortune, with overall sales totaling KRW1.6 trillion ($1.3 billion).
Last year, in the same period, GS Retail recorded a loss of KRW4.8 billion ($3.9 million).
Questions & Answers
Q.What was GS Retail's total profit for this year's first financial quarter?
What was GS Retail's total profit for this year's first financial quarter?
GS Retail reported a profit of KRW88.8 billion (US$72.1 million) for the first financial quarter of this year. This significantly exceeded the projected profit for the period.
Q.What were the main reasons for GS Retail's strong profit increase?
What were the main reasons for GS Retail's strong profit increase?
The substantial profit increase was primarily driven by strong sales of pre-packed meal kits. A significant 98.7-per-cent surge in online sales also contributed considerably to the firm's results.
Q.Did GS Retail make a profit in the same period last year?
Did GS Retail make a profit in the same period last year?
No, GS Retail recorded a loss of KRW4.8 billion (US$3.9 million) in the same period last year. This contrasts sharply with their strong profit performance this year.
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