MP Group Acquires Daesan Pork with Sales of 72.6 Billion Won... "Expecting Profitability Improvement"

[Asia Economy Reporter Hyunseok Yoo] MP Group announced on the 3rd that its profitability is expected to improve after acquiring Daesan Pork, which had sales of 72.6 billion KRW last year.

MP Group disclosed last month that it will acquire 100% of the shares of Daesan Pork, a meat distribution and processing company, for 23 billion KRW. Daesan Pork will be merged into MP Group and dissolved in June.

Established in 2005, Daesan Pork is the leading meat processing company in the Daejeon area, recording sales of 72.6 billion KRW and an operating profit of 4 billion KRW last year. If MP Group and Daesan Pork maintain last year’s sales level, MP Group’s consolidated sales will approach 150 billion KRW. In particular, Mr. Pizza expects significant synergy effects to greatly improve profitability as pork-related ingredients will be sourced internally through the merger with Daesan Pork.

An MP Group company official said, "Daesan Pork reliably secures high-quality fresh pork and has a stable portfolio with sales of fresh pork and processed meat at a 54 to 46 ratio," adding, "As eating habits westernize and income levels rise, per capita pork consumption is increasing by about 4% annually, so stable growth is expected." He continued, "Due to the impact of COVID-19, meat consumption at home has increased, causing pork prices to rise, so profitability improvement from this is also anticipated."