Starbucks Q2 Net Jumps 52 pct Despite Pandemic | Be Korea-savvy

Starbucks Q2 Net Jumps 52 pct Despite Pandemic

(image: Yonhap)

(image: Yonhap)

SEOUL, Aug. 13 (Korea Bizwire)Starbucks Korea on Thursday reported a 52 percent on-year jump in second-quarter net profit on increased non-contact orders and the opening of new outlets.

Net profit for the second quarter jumped to 46.2 billion won (US$39 million) from 30.3 billion won a year ago, according to second-quarter earnings results released by E-Mart Inc., South Korea’s biggest discount store chain operator.

Starbucks Korea is a 50:50 joint venture set up by E-Mart and Seattle-based coffee giant Starbucks.

“Many consumers turned to non-contact services, such as the ‘siren’ and drive-through orders, due to the new coronavirus outbreak. And the opening of new outlets led to an increase in sales,” a company spokesman said in a text message.

Consumers can order a drink online and pick up their orders offline without waiting in line through the U.S. coffee franchise’s mobile-based ordering application called siren.

Operating profit also soared 54 percent to 61.7 billion won in the second quarter from 40 billion won a year ago. Sales rose 5.4 percent to 482.6 billion won from 458 billion won during the same period.

Given Starbucks already earned sales of 937.1 billion won in Korea in the first half, it appears to be on track to achieve 2 trillion won in sales for the whole of 2020.

Starbucks, which entered Korea in 1999, currently operates 1,438 stores here, up from 1,378 at the end of 2019.

Starbucks Korea earned 1.87 trillion won in sales last year, up 25 percent from 1.5 trillion won a year earlier.


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