Hyundai G.F Holdings second-quarter operating profit rises 15.6 percent

Hyundai G.F Holdings said that second-quarter operating profit rose 15.6 percent to 85.3 billion won ($60.1 million) from 73.8 billion won a year earlier.

Revenue increased 2.8 percent to 2.06 trillion won ($1.45 billion) from 2 trillion won, while net income rose 28.6 percent to 132 billion won ($93.2 million) from 103 billion won.

The company attributed its first-half improvement to continued sales and profit growth at key subsidiaries Hyundai Department Store, Hyundai Green Food, Hyundai Home Shopping and Handsome.

First-half operating profit at Hyundai Department Store's department-store unit increased by 79.4 billion won ($56 million), or 48 percent. Hyundai Green Food's increased by 21.4 billion won ($15.1 million), or 34 percent, while Hyundai Home Shopping's standalone operating profit rose by 5.2 billion won ($3.67 million), or 11 percent, and Handsome's consolidated operating profit climbed by 18.6 billion won ($13.1 million), or 83 percent.

The company expects high growth in overseas luxury-goods sales and sales to foreign customers, while stronger sales of higher-margin fashion help expand department-store profitability.

Hyundai G.F Holdings completed making Hyundai Home Shopping a wholly owned subsidiary on July 20. It plans to pursue a second-half spin-off of the investment division and merge it with Hyundai G.F Holdings.

The company plans to pay an interim dividend of 11.7 billion won, or 65 won per share, on Oct. 30. It also plans to buy an additional 50 billion won of treasury shares from August through October and retire about 100 billion won of shares, including its initial purchase, by year-end.