Jeju Beer "Significant Reduction in Q2 Losses After Management Change"

Jeju Beer, the leading craft beer company in Korea, announced on the 16th that it significantly reduced its second-quarter deficit through extensive cost control and proactive management activities to improve operational efficiency.

Jeju Beer disclosed on the 14th that its consolidated operating loss for the second quarter of this year was 1.6 billion KRW, reducing the deficit by approximately 4 billion KRW compared to the 5.5 billion KRW loss in the same period last year. On a half-year basis, the deficit has been significantly reduced by more than 5 billion KRW compared to the previous year, accelerating efforts to normalize management.

Despite fluctuations in the domestic craft beer industry, Jeju Beer recorded consolidated sales of 10 billion KRW in the second quarter, driven by expanded overseas sales. Although losses continued, the significant reduction in the deficit compared to the same period last year due to cost control and management efficiency stands out.

In the second half of the year, Jeju Beer plans to focus on expanding overseas sales while making additional investments in shares of AgeGF, the leading frozen gimbap company, and actively distributing Seolhwa Beer, the world’s number one beer brand, in the domestic market. The company aims to pursue new businesses such as franchise operations and achieve profitability in the second half.

A Jeju Beer representative stated, “Since the management change in May, we have been driving strong efforts to increase overseas sales, including the exclusive domestic distribution contract for Seolhwa Beer, the global sales leader of China’s Hualun Beer, acquiring shares in AgeGF, the global leader in frozen gimbap, and entering the Japanese market, as well as expanding sales in the US, Russia, and China.”

They added, “Through proactive management activities different from the previous Jeju Beer management, we have significantly reduced the deficit in the first half and are targeting a turnaround to profitability in the fourth quarter of this year. Next year is expected to be the first year of profitability, breaking away from the chronic deficits that have persisted for several years.”

Meanwhile, Jeju Beer has been under a trading suspension since the 2nd due to a free capital reduction aimed at offsetting accumulated losses and improving its financial structure. The company plans to completely resolve concerns about delisting due to capital erosion raised by some parties. The scheduled date for the new stock listing is the 27th.