Premium Nexus JSC has released its financial and operational results for the first half 2024 and shared them with the public. The key highlights of this reporting period:
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Market expansion
By the end of the second quarter of 2024, CU operated 393 stores, a 21% increase from the same period last year. During this interim, CU opened 28 new stores across 11 provinces, marking significant progress toward becoming a national-level company.
Comparable store sales saw a 28% increase in the first quarter and a 33% increase in the second quarter compared to the same periods last year, underscoring the growing market potential of CU convenience stores.
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New products and services
Premium Nexus JSC has made the following improvements in their goods and services to enhance customer loyalty:
CU concept stores:
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Snack Library: CU Convenience Store's first concept store, Snack Library, has opened at its 300th branch. This branch offers a wide variety of innovative desserts that are not available at other locations.
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Street food: CU Convenience Store's Street Food concept store has opened at the "Hunsnii 50" branch. This location offers a variety of street food and customizable ramen, available exclusively at this branch.
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CU for family: CU Convenience Store's Hunnu 2222 branch is a one-stop shop for family needs, offering a wide variety of innovative, family-friendly products not available elsewhere.
Central Foods LLC:
CU’s Food Production Center has received the following certificates of conforming compliance with international HACCP:
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MNS ISO 9001:2016
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MNS ISO 22000:2019
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MNS ISO 14001:2016
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MNS CAC RCP 1:2023
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MNS 4946:2019
CU became the first food production organization to certify a total of five standards.
Stora Central LLC:
Stora application has been launched and Storepay installment payments are now available for abroad purchases. With Stora’s successful integration with Taobao, consumers can now also easily order goods from China. Furthermore, at the 8th “Tugs Buteegch” event, Premium Concrete LLC and Stora Central LLC jointly introduced a new service on the stora.mn platform, enabling individuals, construction crews, and large project teams to order and receive the concrete they need in just four steps.
Chingis Beer LLC:
Chinggis Shar Airag LLC has launched a new 2-liter packaging to enhance accessibility for consumers. This initiative aims to allow end users to enjoy Chingis beer not only in bars and restaurants but also at home and while traveling in rural areas, which was previously not available.
Central Commerce LLC:
In April 2024, Central Commerce LLS introduced a new limited edition of Asahi Super Dry beer, "Cherry Blossom" edition. Furthermore, Central Commerce LLC expanded its operations with official local contract sales channels in rural areas and also, became official distributor of The Golden Duck brand.
Central Coffee Roasting LLC:
Starting from the second quarter of 2024, fresh green coffee beans are imported from their origin countries, roasted locally using top-tier German technology, and delivered to consumers at CU's 393 branch stores.
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Financial performance:
In the second quarter of 2024, CU convenience stores achieved net sales of ₮146 billion, a 52% increase over the same period the previous year. Consequently, the company's consolidated net sales for the first half of 2024 reached ₮263 billion, reflecting a 57% year-over-year increase.
Since the launch of the first convenience store in Mongolia, years of dedicated effort, strategic investment, and a robust business model have brought CU to a pivotal point. In the first half of 2024, the company reported a net profit of ₮10.6 billion, meeting profitability projections and shareholder expectations. The management team emphasized that operational readiness and continuous improvements in product and service quality, coupled with external factors such as a favorable macroeconomic environment, increased money supply, and higher household consumption, significantly contributed to the company's profitability.
Investments made since the IPO, combined with the convenience store's successful business model, have started to yield returns. This success has paved the way for further operational expansion, supported by both profits and internal funding.
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