Samyang Foods Reports Operating Profit of 24.5 Billion KRW in Q1, Up 71% YoY

[Asia Economy Reporter Koo Eun-mo] Samyang Foods announced on the 16th through a public disclosure that its operating profit for the first quarter of this year reached 24.5 billion KRW, a 71% increase compared to the same period last year. Sales during the same period rose 44% to 202.1 billion KRW.

The first quarter showed double-digit growth both domestically and overseas, supported by increased export volumes and rising exchange rates. Overseas sales recorded 132.8 billion KRW, up 68% year-on-year, setting a new quarterly export record again following the 123.8 billion KRW in the fourth quarter. The export growth, which had temporarily slowed last year due to the COVID-19 base effect and logistics difficulties, quickly recovered thanks to the development of new market channels in the Middle East and the commencement of operations by local sales subsidiaries in China and the United States.

Domestic sales increased 14% year-on-year to 69.3 billion KRW. The sales growth was driven by price increases as well as strengthened sales and marketing activities, including musical animation advertisements for the Samyang and Buldak brands.

A Samyang Foods official stated, "Although we achieved the best quarterly performance in history, it is difficult to expect continuous profit securing due to the sharp rise in raw material costs such as flour and palm oil since last year," adding, "Going forward, Samyang Foods plans to focus on cost reduction by promoting efficiency in the business structure to secure profitability."