Operating Profit of 509 Million KRW in Q3... Net Profit Also in Black
Turnaround Since Q2 2019
"Improved Fundamentals After Han&Co Became Largest Shareholder"
At the beginning of this year, Namyang Dairy Products, which welcomed the private equity firm Hahn & Company (Hahn & Co) as its new owner and is undergoing structural reform, succeeded in turning a profit for the first time in 20 quarters.
Namyang Dairy Products announced on the 14th that its consolidated operating profit for the third quarter of this year was 509 million KRW, turning positive from an operating loss of 5.6 billion KRW in the same period last year. Net profit also turned positive at 40 million KRW. This marks the first time in 20 quarters since the second quarter of 2019 that Namyang Dairy Products has recorded both quarterly operating profit and net profit. Sales during the same period decreased by 4.5% to 242.7 billion KRW.
Signboard at the entrance of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul. Provided by Namyang Dairy Products
The company attributed this return to profitability to the profitability-focused management strategy implemented since Hahn & Co became the largest shareholder at the end of January. This included strengthening responsibility management by division, restructuring underperforming businesses such as the foodservice sector, and pursuing management innovation activities such as business structure reorganization, cost, and expense reduction.
As part of shareholder value enhancement activities, the company announced plans to repurchase treasury shares worth approximately 20 billion KRW each in June and October. In September, it canceled 40,269 treasury shares (about 23.1 billion KRW) to strengthen shareholder returns, and last month, it also decided on a 10-to-1 stock split, reducing the par value of shares from 5,000 KRW to 500 KRW.
A Namyang Dairy Products official stated, "We will continue to focus on normalizing management through strengthening responsible management, enhancing shareholder value activities, and operating a profitability-centered business portfolio."
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