Korea Seven Reports Operating Profit of 4.1 Billion Won After 11 Quarters

Korea Seven recorded an operating profit of 4.1 billion won in the second quarter of 2023, marking its return to profitability after 11 quarters. The improvement in store profitability and management efficiency has been analyzed as contributing factors to the recovery in profits. The operating profit for the second quarter improved by 12.8 billion won compared to the same period last year, while sales decreased by 2.6% to 1.2178 trillion won compared to the same period last year. This profit is the first since the third quarter of 2023. The company explained that although the number of stores has slightly decreased, the level of operations has improved, leading to better operating profits. In the convenience store sector, operating profit is affected by factors such as operating costs, labor costs, rent, and the structure of product purchases. Even if sales decline, operating profits can improve by reducing cost structures or increasing the proportion of high-margin products. Strengthening product competitiveness has also been pointed out as a factor for the rebound in performance, including improvements in the quality of ready-to-eat meals through the 'Rice Project' and the expansion of original Japanese smoothies. Favorable weather conditions and increased domestic travel demand due to high exchange rates have also positively impacted store sales. Korea Seven plans to improve the shopping environment through existing store improvement activities and increased investments. However, the decline in sales remains a challenge, and the improvement in store profitability and sales recovery will be confirmed in subsequent results.

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