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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Kyochon F&B, which operates the Kyochon Chicken brand, reported a sharp decline in first-quarter earnings.
The company announced on May 12 that its consolidated operating profit fell 50.6% year-on-year to KRW 5.3 billion. Revenue declined 1.0% to KRW 123.4 billion, while net profit dropped 48.7% to KRW 3.4 billion.
Kyochon F&B attributed the weaker performance to unstable raw material supply caused by the prolonged avian influenza (AI) outbreak during the winter season, as well as costs related to supporting cooking oil for franchisees.
However, the company noted that the decline was partially offset by the normalization of global store operations in markets such as the United States and China, along with growth in new business segments.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
