April 19, 2024

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Its gross profit margin from convenience stores in the fourth quarter last year declined and dragged down its earnings, and the fact that cigarettes, a low-margin product, was the main item that led growth in volume, hampered its margins, explained analyst Joo Yeong-hun.

Reflecting this, the analyst lowered the estimated net profit for this year to 184.9 billion won from 196.8 billion won. The retailer’s revenue in the first quarter will rise 14 percent on-year to 1.35 trillion won but operating profit will fall 7.3 percent to 35.6 billion won, he estimated.

The company, though, has announced that it will expand dividends this year by 30 percent to 3,100 won per share, added Joo maintaining a “buy” recommendation. 

By Hwang You-mee (glamazon@heraldcorp.com)