[Asia Economy Reporter Park So-yeon] Namyang Dairy Products is showing strong performance in the early trading session.
As of 9:33 AM on the 19th, Namyang Dairy Products is trading at 478,000 KRW on the KOSPI market, up 33,000 KRW (7.42%) from the previous day.
Meanwhile, Namyang Dairy Products recorded poor performance in the third quarter following a weak second quarter. It is analyzed that the fallout from the 'Bulgari's Incident' that erupted in April has continued for over half a year.
Namyang Dairy Products posted an operating loss (consolidated basis) of 23,039.23 million KRW in the third quarter of this year. Sales decreased by 2.34% year-on-year to 240,098.15 million KRW, and the net loss for the period was 15,947.09 million KRW.
The poor performance of Namyang Dairy Products is closely related to the 'Bulgari's Incident' that surfaced in April. In April, Namyang Dairy Products announced that Bulgari's helped prevent COVID-19, which led to administrative sanctions and legal actions.
About a month later, Chairman Hong Won-sik issued a public apology, but public criticism and boycott campaigns against Namyang Dairy Products continued. The company’s sale procedures, initiated afterward, were repeatedly postponed, and the damage to its image has persisted until recently.
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