CEO Kim Dong-chan "Will Increase Sales by 20% This Year"
Overseas Sales Expected to Exceed 70% of Total
Vice Chairman Kim Jung-soo "Aim for Greater Leap with MapTang"
The keyword chosen this year by Kim Jeong-su, Vice Chairman of Samyang Foods and known as the 'Mother of Buldak Bokkeummyeon,' and Kim Dong-chan, CEO of Samyang Foods, was 'export.' After achieving over 30% sales growth last year, Samyang Foods pledged to increase sales by more than 20% this year through expanded sales in the US and Europe. Through this, they plan to raise the overseas sales ratio from the high 60% range to the 70% range.
After the shareholders' meeting held on the 28th at the headquarters in Hawolgok-dong, Seongbuk-gu, Seoul, CEO Kim told reporters, "We have a goal of increasing sales by 20% this year as well," adding, "We will complete the Miryang Plant 2 by the first half of 2025 to prepare for the increasing volume."
Founded in 1961, Samyang Foods reached the milestone of '10 trillion KRW in sales and 100 billion KRW in operating profit' for the first time last year. On a consolidated basis, last year's sales were 1.1929 trillion KRW, and operating profit was 147.5 billion KRW. Sales increased by more than 30% compared to the previous year.
Samyang Foods' steep growth lies in the increase of overseas sales. Last year, overseas sales rose by 34% year-on-year to 809.3 billion KRW. The overseas sales ratio reached 68%, the highest level among domestic food companies. CEO Kim said, "Considering that volumes in the US and Europe continue to expand, we expect the overseas sales ratio to exceed 70% this year."
Regarding plans to lower ramen prices due to the recent decline in international wheat prices, he drew a line. CEO Kim explained, "Although wheat prices have fallen, prices of other raw materials are rising," adding, "Additionally, expenses such as gas and electricity used in product manufacturing are increasing, so we are trying our best not to raise prices."
He also expressed confidence in new strategic products like Maetang. CEO Kim emphasized, "We are working to expand Maetang and sauce products in addition to Buldak Bokkeummyeon," adding, "We will show the results in sales this year."
On this day, Kim Jeong-su, Vice Chairman of Samyang Foods, was unable to attend the shareholders' meeting due to COVID-19 infection. In his greeting, Vice Chairman Kim said, "Despite the domestic economic downturn last year, we took a step forward by increasing export volumes," adding, "We will achieve even greater leaps this year through the expansion of Miryang Plant 2 and nurturing the new strategic brand Maetang."
Vice Chairman Kim emphasized, "Last year was a growing year for Samyang Foods despite the unstable financial markets due to global economic tightening and the domestic economic downturn," adding, "Especially, despite the sharp rise in raw material prices caused by the Russia-Ukraine war, we maintained a high operating profit margin of 12%."
The major reason for Samyang Foods' growth last year, according to Vice Chairman Kim, was again 'overseas sales.' CEO Kim said, "Along with stabilizing the business of local subsidiaries in the US and China, we achieved channel diversification by newly entering major mainstream channels, resulting in remarkable growth in overseas sales volume."
He continued, "The Buldak Bokkeummyeon series and Samyang Ramen showed stable sales growth both domestically and overseas, and the Maetang series, launched in August last year, also recorded stable results, establishing itself as a key lineup product of our company."
Vice Chairman Kim stressed that they will lay the foundation for a big leap this year as well. He said, "We will ensure the smooth progress of the additional expansion of Miryang Plant 2 and foster the strategic brand Maetang and sauce business sectors as new cash cows for our company." He added, "We promise to make multifaceted efforts to become a company that leads a 'healthier and more enjoyable food culture.'"
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