[Click eStock] "Foodnamu, Consecutive Record High Sales for 2nd Quarter"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities announced on the 29th that Foodnamu is expected to record its highest sales for the second consecutive quarter.

Jinhyung Park, a researcher at Yuanta Securities, stated, "The second-quarter performance is estimated at sales of 48.9 billion KRW and operating profit of 1.1 billion KRW," adding, "Following the Q1 TvN Three Meals a Day PPL, about 4 billion KRW was spent on advertising for the Q2 TvN Unexpected Boss PPL, which directly contributed to subscriber growth, and a steep expansion in scale is expected to continue."

The number of subscribers to Ranking Dakcom in Q2 is estimated to have increased by about 30% year-on-year to 1.6 million. Considering the seasonal peak starting in June and the growing interest in home training and healthy food due to the spread of COVID-19, it is analyzed that the second quarter will achieve the highest quarterly sales ever. In the third quarter, it is expected to continuously break the record for the highest quarterly sales by fully benefiting from the peak season effect.

Researcher Park said, "This year, the company is expanding its market dominance through an aggressive expansion strategy," adding, "Although profitability has slightly decreased due to steadily increasing advertising expenses relative to sales, it is currently a time to focus on expanding scale."

Park emphasized, "Foodnamu is not simply a food sales company but a food tech company with a platform, so due to the nature of platform companies, expanding scale by acquiring customers is more important than short-term profit improvement." Through this, it is expected to accumulate vast customer data and achieve various business synergies in the future new business developments such as Gaegunjil.com and StudioU.

Foodnamu's annual sales and operating profit for this year are expected to increase by 60.1% and 12.9%, respectively, compared to the previous year, reaching 187.6 billion KRW and 7.5 billion KRW.