SEOUL– GS Retail Co., the operator of GS25 convenience stores, said Tuesday its third-quarter net income plummeted nearly 95 percent on increased delivery costs and investments.
Net income came to 40.2 billion won (US$29 million) on a consolidated basis for the three months ending in September, compared with 754.8 billion won during the same period of last year, the company said in a regulatory filing.
Operating profit declined 16 percent on-year to 87.6 billion won. Sales rose 9.1 percent to 2.95 trillion won.
GS Retail said the sharp decline in net income is blamed on increased delivery costs at its supermarkets and investments for the company’s new mobile app launched in October, which connects various sales channels of the retailer into a single platform.
Operating profit at its convenience stores inched up 0.7 percent, while sales rose by 8.2 percent to 2.1 trillion won.
Its supermarket business saw an operating profit drop of 4.6 percent despite an 8.1 percent increase in sales affected by a cost increase for its same-day delivery service.
Its hotel business saw an operating profit jump of 22.8 percent, thanks to more bookings, corporate events and weddings from eased pandemic restrictions.
GS Retail operates over 15,400 GS25 convenience stores across South Korea, more than 360 GS THE FRESH supermarkets, seven hotels and an infomercial channel.
Source: Yonhap News Agency