40th Regular Shareholders' Meeting Held
Resumption of Forum After 4 Years
Overseas Subsidiaries Confident of Turning Profitable This Year
"Value-Up Plans... Will Disclose Mid- to Long-Term Dividend Policy"
Pulmuone, celebrating its 40th anniversary, has pledged to join the '1 trillion won sales club' this year.
On the morning of the 28th, at the 40th Annual General Meeting of Shareholders held at the Science and Technology Convention Center in Gangnam-gu, Seoul, Pulmuone CEO Lee Hyo-yul said in his greeting, "Pulmuone has changed the value standards and paradigm of the food industry by proposing and practicing a lifestyle for the sustainability of people and the global environment," adding, "In the future, we will leap forward as the global number one (NO.1) sustainable food company leading the K-food business."
Last year, Pulmuone recorded its highest-ever performance with sales of 2.9935 trillion won and operating profit of 62 billion won. Compared to 2022, sales increased by 5.5%, and operating profit grew by 134%.
Lee Hyo-yul, CEO of Pulmuone, is attending the 40th General Meeting of Shareholders held on the morning of the 28th at the Seoul Gangnam-gu Science and Technology Convention Center, reporting the number of shareholders present. [Photo by Minji Lee]
"Turnaround in the U.S. Market Certain This Year"... Expansion into China and Japan Also Underway
The main driver behind this performance was the overseas food business. Currently, Pulmuone has subsidiaries in the United States, China, Japan, and Vietnam. As of last year, overseas market sales amounted to 560 billion won, with an operating loss of 22.2 billion won. Although losses continued, the deficit narrowed by 23 billion won compared to 2022 (-45.5 billion won). This was thanks to a 40 billion won increase in sales at the U.S. subsidiary (365.5 billion won).
CEO Lee emphasized, "Cooperative relationships with large retailers like Costco in the U.S. market have been strengthened, and for noodle products, localization of production has significantly reduced costs and logistics expenses," adding, "The U.S. market turnaround is certain this year."
The China subsidiary is also expected to record a profit this year. This outlook is based on the resumption of product transactions for the flagship product 'Sam's Club (pasta),' which is expected to accelerate profit improvement. It is also reported that the operating rate of the Beijing factory has increased. CEO Lee stressed, "Operating profit as of the closing date from January to March this year will be in the black." In the Japanese market, expansion of product lines such as tofu and yubu (fried tofu pouches) is underway. By introducing products with high raw material content, they plan to boost sales growth. In Vietnam, business feasibility is being tested mainly in Hanoi and Ho Chi Minh City. 'Mozzarella Hotteok Dumplings' are considered popular products.
CEO Lee presented four core strategies: ▲Expansion of sustainable foods ▲Global market expansion ▲Strengthening ESG management ▲Food tech. Regarding the expansion of sustainable foods, domestically, 'Pulmuone Earth Diet' will be the focal point, while in the U.S., 'Plantspired,' and in Japan, 'Tofu Protein' will serve as the core. Pulmuone plans to expand into Canada, Europe, and Southeast Asia once profitability is achieved in its main markets of the U.S., China, and Japan.
At the shareholders' meeting, five agenda items were approved, including ▲Approval of the 40th fiscal year financial statements ▲Changes to the dividend record date and increase in the number of board members, amending part of the articles of incorporation ▲Appointment of directors ▲Appointment of audit committee members ▲Increase in the director remuneration limit from 3.5 billion won (11 members) to 4.5 billion won (11 members).
Pulmuone "Preparing Mid- to Long-Term Dividend Policy... Reducing Scale of Facility Investment"
Lee Hyoyul, CEO of Pulmuone, is attending the 40th General Meeting of Shareholders held on the morning of the 28th at the Seoul Gangnam-gu Science and Technology Convention Center, explaining stock price management measures to the shareholders. [Photo by Minji Lee]
At the shareholders' meeting, Pulmuone attracted attention by resuming the open forum, which had been suspended for four years due to the COVID-19 pandemic. During the forum, questions focused on financial structure and ways to enhance shareholder value. One shareholder participating online asked about plans for 'stock value-up.' In response, CEO Lee said, "We have hired an IR expert this year to strengthen communication with shareholders," adding, "We will work hard to increase shareholder value." He further added, "We have been paying fixed dividends, but we will soon prepare and share a mid- to long-term dividend policy."
Regarding financial structure improvement measures, he explained, "The board of directors is closely monitoring the financial structure." Pulmuone's debt ratio currently stands at 340%. It was around 220% in 2021 but rapidly increased over two years. Director Lee Woo-bong said, "This is due to increased investments in the U.S., China, and Japan," adding, "The scale of capital expenditures (CAPEX) was 1.5 times (120 to 130 billion won) the generated cash flow, but we plan to reduce it to half of EBITDA (earnings before interest, taxes, depreciation, and amortization)."
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