[Asia Economy Reporter Song Seung-yoon] Pulmuone achieved strong performance in the second quarter, driven by the external growth of its overseas business and improved profitability in its food service distribution business.
On the 17th, Pulmuone announced through a public disclosure that its consolidated operating profit for the second quarter of this year reached 15.7 billion KRW, a 70.1% increase compared to the same period last year. During the same period, sales rose 11.2% to 705.9 billion KRW. Net profit increased by 226.5% to 4.4 billion KRW. For the first half of the year, sales were 1.3565 trillion KRW and operating profit was 21.8 billion KRW, up 11.6% and 31.4%, respectively, compared to the same period last year.
This quarter’s operating profit was the highest in the past five years for the second quarter, including the periods before and after COVID-19. Despite external challenges such as premium issues in maritime freight, global oil prices, and grain price burdens due to the Ukraine crisis, the overseas business division and the food service distribution business division each performed well. The external growth of overseas businesses in the U.S., China, and Japan, along with strong domestic group meal contract wins and sales growth driven by the resumption of economic activities (reopening), led the overall sales increase. The food service distribution business saw increased demand and improved profitability due to the endemic transition, while the food manufacturing and distribution business experienced significant growth in operating profit through B2B demand recovery and entry into new channels.
The food manufacturing and distribution business, which includes B2C sales of tofu, eggs, and home meal replacement (HMR) products directly to customers, as well as B2B distribution of ingredients to industries, schools, and daycare centers, posted a 9.1% year-on-year increase in operating profit to 19.8 billion KRW in the second quarter. The food service distribution business, which provides face-to-face food services at rest areas and other locations, also turned profitable with an operating profit of 2.4 billion KRW.
Overseas businesses, including those in the U.S., Japan, China, and Vietnam, showed steady growth across all major countries. Pulmuone USA, the U.S. subsidiary, saw growth driven by strong sales of its flagship product Teriyaki Udon through Costco’s MVM (Multi-Vendor Mailer, a monthly coupon book discount event) in the first quarter, as well as stabilization of the ethnic channel, which switched to direct sales last year. Pulmuone Japan’s subsidiary Asahiko experienced strong sales of tofu bars, and Pulmuone China’s subsidiary Pumeituo Foods continued to see growth in its main products and channels.
A Pulmuone official stated, "Despite challenging business conditions due to external factors such as increased freight costs caused by rising oil prices, we achieved significant growth in sales and operating profit in the second quarter of this year. We plan to continue domestic and overseas growth in the second half of the year by expanding our lineup of plant-based food specialty brands and implementing tailored strategies for each overseas market."
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